Novig is reacting to ongoing changes in the gaming industry by making an effort to solidify its footprint in the prediction market space as a supplier with a government agency.
The New York-based company is taking the initial step to operate as an exchange operator for event contracts by applying for registration with the Commodity Futures Trading Commission (CFTC), the regulator of event contract trading in the U.S. Novig is applying for CFTC registration under Ludlow Exchange LLC as a prediction market exchange. CFTC approval, along with National Futures Association approval, allows Novig to deliver event contracts on sports, culture and entertainment to U.S. customers.
Novig is registering with the CFTC as a designated contract market (DCM), allowing Ludlow to supply event contracts to consumers, with futures commission merchants hosting them. Companies like Kalshi, Crypto.com and Polymarket operate in the U.S. as DCMs.
SBC Americas reached out to Novig for comment and has yet to receive a response.
Novig’s recent shifts in strategy
Novig, led by CEO Jacob Fortinsky, has undergone several operational changes over the last several years. The company originally operated as a betting exchange, with market access to only two U.S. markets, New Jersey and Colorado. The states were the only markets in America where Novig could obtain licensing as a betting exchange. Novig eventually ceased operations in Colorado after only four months in operation.
Novig changed its strategy after closing operations in Colorado, shifting to a sweepstakes model. The company initially launched its sweepstakes model of gaming in 42 states and Washington, D.C., offering free-to-play prediction gaming using a dual-currency system of payment. Its virtual coins and cash are leveraged to win contests with real money prizes. According to data provided by Novig, over 50% of its sweepstakes are were peer-to-peer.
Novig supplemented its entry into the sweepstakes space last August by closing an $18 million Series A funding round led by California-based venture capital firm Forerunner.
That same month, Novig’s operations were impacted by a ban on dual-currency sweepstakes games in New Jersey, leading to its exit from the Garden State.
Novig is diving head first into the prediction market space as governors in California, Connecticut, Montana, New York and Nevada have also signed pieces of legislation that implement bans on dual-currency sweepstakes. In 2026, lawmakers in Maine, Maryland, Mississippi and Indiana have introduced bills that ban dual-currency systems.
