Novig Launches Sports Prediction Market with $18 Million Volume Amid Regulatory Clash

Novig, a new prediction market focused exclusively on sports, launched with $18 million in trading volume on its first day. CEO and co-founder Jacob Fortinsky has implemented a strict age restriction of 21, exceeding the industry standard of 18 adopted by competitors such as Polymarket and Kalshi. Fortinsky stated the decision responds to concerns regarding youth susceptibility to risky behaviour and lobbying from groups including the NCAA, aiming to position the platform as a legitimate financial product rather than a casual betting service.

To enforce these guardrails, Novig has codified a responsible trading framework in its exchange rulebook. The platform prohibits marketing to minors and bans advertisements that claim there is no risk or appeal to participants facing financial difficulties. When advertising on social media platforms such as TikTok, Novig utilises settings to restrict targeting to users over the age of 21. Fortinsky described traditional sportsbooks as inefficient, exploitative, and predatory, contrasting them with Novig’s peer-to-peer model where parties trade directly without a house taking a vig.

The launch has immediately triggered legal conflict with state regulators. Within three days of its launch, Novig sued New York, Massachusetts, New Mexico, and Washington to prevent them from applying state gambling laws to its federally regulated exchange. A New York judge recently denied Novig’s request for a temporary restraining order, citing a prior decision against competitor Kalshi. Sports betting attorney Daniel Wallach noted that while the complaints serve as a marketing strategy, recent court decisions have largely favoured state attorneys general, though the dispute may ultimately reach the US Supreme Court.

Novig is actively courting institutional investors, including proprietary trading firms and banks, to participate in its peer-to-peer model. The company is developing tools to facilitate programmatic trading, allowing algorithms to automate bets on outcomes such as Super Bowl winners or New York Mets performance metrics. Fortinsky highlighted that this infrastructure enables smaller trading shops to compete directly with major Wall Street firms, although he acknowledged that the current user base of small retail traders is distinct from the institutional capital the firm is seeking to attract.

The platform’s exclusive focus on sports has drawn cultural scrutiny, evidenced by significant social media criticism against the New York Mets following their announcement of a partnership with Novig. By avoiding markets on contentious topics such as US elections or the Iran war, Novig aims to isolate itself from broader political debates. However, its business model remains entirely dependent on the legal status of sports-related event contracts, leaving the company’s position vulnerable if states succeed in banning such speculation.