Novig has raised $75 million in Series B funding as it tries to move from a sweepstakes sports product into a federally regulated prediction market. The company said the capital will support a “trader-first” sports prediction exchange built around peer-to-peer pricing rather than the sportsbook model, where the operator sets lines and holds the risk.
The raise arrives as state regulators tighten their stance on sweepstakes platforms, while the Commodity Futures Trading Commission is signaling a more assertive posture in defending federal oversight of event contracts.
A sports exchange pitch, not a sportsbook
Novig markets itself as a commission-free exchange designed for sports traders. The company has framed its product as a marketplace that matches users against each other, positioning pricing transparency and “no house” exposure as the core difference from traditional sportsbooks.
The round follows an $18 million raise announced in August, giving Novig fresh runway at a moment when prediction market positioning is splitting into two tracks: state gaming regulation and federal commodities law.
The sweepstakes pivot created a patchwork footprint
Novig launched in 2021 as a betting exchange in New Jersey and Colorado, and briefly offered sports betting in Colorado before exiting the state. In 2024, it pivoted to a sweepstakes structure, putting it closer to products such as Fliff and other promotional-model platforms.
That shift has come with jurisdiction churn. After New Jersey enacted a sweepstakes casino ban, Novig exited the state, and it also exited Arizona following regulatory action. Under its published sweepstakes rules, Novig lists several restricted jurisdictions, including Colorado, Michigan, Nevada, Tennessee, Louisiana, and others.
A federal pathway through designated contract market status
In January, Novig applied to register with the CFTC as a Designated Contract Market, a status that would allow it to list event contracts under federal commodities rules. Approval would place Novig alongside exchanges such as Kalshi and Polymarket, which are pursuing sports-adjacent contracts under CFTC oversight rather than state gaming licenses.
That regulatory route is still unresolved. Until Novig secures DCM approval, it remains a sweepstakes operator operating inside a shifting state-by-state landscape, with investors now funding the bet that a federal license can replace that patchwork.
