After opting to forgo the regulated market for a sweepstakes model, Novig is now presenting itself in a new way too, calling itself a prediction market as opposed to a peer-to-peer sportsbook.
The company also announced on the closing of an $18 million Series A funding round led by California-based venture capital firm Forerunner. The round included participation from existing Novig investors Y Combinator, NFX, Perceptive Ventures and Gaingels.
Novig, which debuted its sweepstakes product in September 2024, will use the proceeds from the round to bolster its portfolio of markets and deliver new features to the platform, including leaderboards and head-to-head trading. The capital will also support additional job opportunities, the launch of a web app, and provide payment solutions for crypto, debit cards and credit cards.
“The support from some of the world’s leading tech investors, who believe in our mission to democratize sports betting for good, is a powerful endorsement—not just of what we’ve built, but of the future we’re creating,” said Novig CEO Jacob Fortinsky. “This funding will allow us to scale our mission across more sports, more formats, and ultimately, to more users.”
Novig’s latest funding round comes after the company raised $6.4 million in August 2023. The round included a contribution from legendary NFL quarterback Joe Montana.
The round allowed Novig to make its first foray into the U.S. gaming industry as a standard sportsbook operator with a launch in Colorado in 2024. Less than six months later, Novig exited the state only to return after it shifted its strategy to a sweepstakes model.
Novig currently offers its sweepstakes model in over 40 states and D.C.
Novig’s sweepstakes model
The platform provides users with two gaming options: Novig Coins and Novig Cash.
New users receive a balance of each with Novig Coins used for free-to-play, while Novig Cash can be redeemed for real cash prizes. The volume of wagers on the platform surpassed $2 billion annually.
According to data provided by the New York-based company, more than 50% of its trades are from peer-to-peer operations.
Dual-currency models raise concerns
Novig raised new funding as sweepstakes models face pushback across America.
Last month, Louisiana Attorney General Liz Murrill issued an opinion stating online sweepstakes casinos that offer dual-currency games violate state law.
The opinion came after Gov. Jeff Landry vetoed an anti-sweepstakes measure in June.
Connecticut adopted an anti-sweepstakes bill with Gov. Ned Lamont signing Senate Bill 1235 into law mandating legal repercussions for their operation or promotions. Montana is the second U.S. market to enact a ban on the operation of sweepstakes casinos.
The measure, Senate Bill 555, goes into effect on Oct. 1.
