Novig Gets CFTC OK to Run U.S. Prediction Market

Novig received approval from the Commodity Futures Trading Commission on June 16, 2026, to operate as a Designated Contract Market. The designation allows the company to list and trade federally regulated prediction market contracts across the United States.

Novig was founded in 2021 as a peer-to-peer sports betting exchange and has shifted to a prediction market model. The company previously secured a state sports betting license in Colorado in October 2023, failed to win a New Jersey license, and in September 2024 launched a sweepstakes-style product using a dual-currency model that reached users in 42 states and Washington, D.C.

The sweepstakes product was deployed to operate in states where traditional state-level sports betting rules limit access. Several states have moved to restrict or ban sweepstakes-style platforms. The CFTC designation creates a federal regulatory framework under which Novig can operate nationally.

Novig completed a $75 million financing round in February 2026 that valued the company at about $500 million and brought its total capital raised to $105 million. The firm has not applied for a Derivatives Clearing Organization designation. Other operators have pursued both DCM and DCO approvals; one recent entrant secured both DCM and DCO designations, and another company that operated as a regulated sportsbook is awaiting CFTC approval.

The prediction market space has drawn several competitors. Kalshi operates under federal rules and retains early market presence. Polymarket launched an official U.S. product in May 2026. Financial and crypto firms have introduced exchange-style prediction products, and major sportsbook operators run prediction markets in states where sports betting is not available. At least one additional firm is seeking CFTC authorization.

Market participants cite a wide range of potential trading volume for prediction markets. One projection frequently referenced by industry sources estimates annual volume could reach $1 trillion by 2030 if legal and regulatory conditions permit. Several states have challenged the legality of federally regulated exchanges offering contracts tied to sports events, and those disputes could be subject to further litigation.

In a company press release, Novig CEO Jacob Fortinsky wrote, “Novig is the best place to trade sports. From day one, our vision has been to operate within a single national framework that raises the standard for the entire category. Novig is the first sports prediction market built by sports traders for sports traders, and the momentum we’ve seen to date reinforces that there is real demand for a more efficient, and ultimately more profitable way for sports fans to participate in sports markets.”

The CFTC approval allows Novig to operate under federal rules as a DCM; the company continues to face competition from both native prediction-market firms and larger platforms expanding into prediction products, as well as ongoing state-level legal challenges.