Key Highlights
- Novig is applying for approval from the U.S. Commodity Futures Trading Commission to operate under federal rules.
- The company raised $75 million in a Series B round led by Pantera Capital, bringing its valuation to $500 million.
- It uses a peer-to-peer model and does not charge commissions to regular users, unlike traditional sportsbooks.
Novig, a sports prediction startup, has raised $75 million in a Series B funding round led by Pantera Capital, pushing the company’s valuation to $500 million.
The firm plans to use the fund to expand its sports prediction business nationwide and secure approval from the U.S. Commodity Futures Trading Commission (CFTC), so it can operate under federal financial market rules instead of state gambling laws.
Novig says it is different from normal sports betting apps because it uses a peer-to-peer system. This means users trade directly with other users instead of betting against a traditional sportsbook.
The company was founded in 2021 by Jacob Fortinsky and Kelechi Ukah. Fortinsky started working on the idea while he was a senior at Harvard. In 2022, the startup joined Y Combinator to build and improve its product.
No “Vig” for retail traders
Right now, the company operates under a sweepstakes model, which allows users to participate without violating some state rules. Novig does not charge fees to everyday users, unlike traditional sportsbooks that take a commission or “vig” on bets. Instead, the company makes revenue by charging institutional participants who provide liquidity on the platform.
“We started the company because we felt sports betting was broken,” Fortinsky said. “Our mission from day one was to build a platform really built for modern sports bettors in the most consumer-friendly, the most engaging, and the most profitable way possible.” He added that about 20% of Novig users are likely to win money, which he says is higher than the usual rates on other platforms.
Novig previously registered as a sports betting operator in Colorado. However, that setup did not allow it to run across the entire country. By applying to the CFTC, the company hopes to secure approval within about six months. If approved, Novig would run more like a financial trading market rather than a casino-style sportsbook.
Recent growth in the U.S. betting market
The timing of Novig’s raise comes as U.S. sports betting continues to grow. In 2018, the Supreme Court allowed states to legalize sports wagering, which allows fans to place bets on leagues like football, basketball, and baseball.
This decision led to a surge of new betting platforms across the country. In 2024, prediction market company Kalshi won a court case that allowed platforms to offer more types of contracts, including sports-related trades and election betting.
Today, most of Kalshi’s trading comes from sports contracts. The legal changes have opened the doors for startups like Novig to enter the market and provide a fair, transparent, and user-friendly alternative for sports fans.
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