Rake-free sportsbook company Novig raises $6.4 million

Rake raking leaves
Image: Shutterstock

Another group aiming to disrupt the sports betting industry recently completed a seed funding round for $6.4 million.

Novig, which as the name may indicated, is designed to be a rake-free sports betting exchange received financing from a long list of groups including Lux Capital, Soma Capital, Alan Rutlege, and NFL Hall of Famer Joe Montana.

“Novig is an absolute game changer. The future of sports betting is here,” Montana said in the release announcing the funding round.

The exchange is gearing up to launch in Colorado via a 10-year market access partnership with Bronco Bills Casino in Cripple Creek.

“We’re honored to have the support of so many of the world’s leading tech investors, who believe in our mission to democratize sports betting for good,” said Novig co-founder Jacob Fortinsky. “Our vision is clear: to reshape the sports betting landscape that has long favored exploitation over innovation and to usher in an era of integrity, transparency, and empowerment. Together, we’re rewriting the rules and putting the power back in the hands of bettors.”

Novig was founded by Fortinsky and his Harvard classmate Kelechi Ukah is hoping to make an impact with an exchange model drawing inspiration from the financial sector.

Instead of charging vig on the wager transactions, Novig aims to generate revenue via, “institutional traders, data monetization, and internal market making.”

The group ran a beta test with 200 users that placed over 15,000 wagers across nearly 1,300 markets in a two-week period. At launch, the operator is planning to offer NFL, NBA, and MLB betting, There will be standard straight bet markets and team futures as well as in-game trading, but there is no mention of parlays.

While Novig will likely be the first exchange to launch in Colorado, there are several operators pursuing the exchange model in states like New Jersey and Indiana, including Mojo, Prophet Exchange, and Sporttrade.