Key Highlights
- Novig gets CFTC approval (DCM), allowing it to run a federally regulated sports prediction exchange across all 50 U.S. states.
- Sports prediction markets are booming, with Kalshi hitting $1.2B in daily volume and over $6.1B in weekly volume.
- Big names like Robinhood, DraftKings, and others are racing in while regulators and states argue over control.
The U.S. Commodity Futures Trading Commission (CFTC) today approved Novig, a peer-to-peer sports trading platform, as a Designated Contract Market (DCM), giving the company permission to run a fully regulated sports prediction exchange and expand across all 50 states under one federal rule system.
According to the official release, the approval allows users to trade contracts based on sports outcomes in real time, with oversight similar to financial markets.
Sports prediction markets heat up fast
The approval comes as sports prediction markets grow at a rapid speed now. Big sports events like the World Cup, NBA Finals, and the upcoming NFL season have pushed trading activity to new highs.
Kalshi, one of the largest prediction market platforms, recently reported a single-day trading volume of $1.2 billion.
At the same time, multiple companies are seeking approval from the CFTC to operate as Designated Contract Markets, creating intense competition for early market position.
Novig joins the growing market
Novig is one of the newest names joining this wave after receiving CFTC approval for its DCM application. The company is built around the idea of users trading directly with each other, instead of betting against a sportsbook. The goal is to “cut out the middle man” and change how sports trading works. In Novig’s model, the platform stays neutral and earns money from trading activity, not from customer losses.
The company, in its release, says it has already handled more than $5 billion in total trading volume and over $8 billion in annual activity. It also raised $75 million in a Series B funding round led by Pantera Capital, with backing from several major venture firms. Before this, Novig operated in Colorado under a sports betting license and later switched to a sweepstakes model before moving into the federal exchange system.
Big players rush into the market
Competition in this space is getting very intense. ProphetX also received CFTC approval and wants to build a sports-native exchange with its own clearing system.
Kalshi remains the biggest player in trading volume, while Robinhood, Polymarket, and Crypto.com are bringing prediction markets to everyday users through their trading apps.
Traditional sportsbook operators, including DraftKings, FanDuel, and Fanatics, are also exploring prediction market products, either through partnerships, acquisitions, or integration into their existing platforms.
Regulatory debate continues
The industry’s expansion comes amid an ongoing legal dispute over regulatory authority. Several U.S. states argue that sports prediction markets are just another form of gambling and should not be handled by federal regulators.
However, the CFTC says these markets are financial contracts and should stay under federal law. Courts and lawmakers are still debating this issue, and the outcome could decide how big this industry can become.
Courts and lawmakers continue to debate the issue, with the outcome likely to shape the future regulatory framework for the U.S. prediction market industry.
Also Read: From Betting to Trading: How FIFA World Cup is Supercharging Prediction Markets
