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Less than a month after filing for registration with the Commodity Futures Trading Commission, Novig has added serious fuel to its next chapter. The New York-based sports trading platform closed a $75 million Series B round at a $500 million valuation, signaling investor confidence in the company’s latest pivot.
The round was led by Pantera Capital, with participation from Multicoin Capital, Makers Fund, Edge Equity, and returning backers Forerunner and Perceptive Ventures. In total, Novig has now raised more than $105 million, including an $18 million Series A last August.
CEO Jacob Fortinsky said the move is about more than survival.
“We chose to partner with the best crypto venture firms in the world to further accelerate our plans to make Novig the most efficient and liquid sports prediction market in the world,” Fortinsky said.
In his view, competitors are experimenting with new markets that may lack proven demand, while Novig is focused on fixing an existing one: sports betting.
Why Novig is moving beyond sweepstakes
Novig’s path has not been linear. The company launched in 2021 as a betting exchange, operating in New Jersey and Colorado when those were among the few states open to that structure. Colorado eventually exited the market, prompting a pivot.
The next chapter leaned into a sweepstakes casino model built around a dual-currency system. That move allowed Novig to operate in 42 states and Washington, D.C., offering free-to-play style prediction contests.
According to company data, more than half of its sweepstakes activity was peer-to-peer. However, pressure from lawmakers and regulators began tightening around dual-currency sweepstakes platforms. After New Jersey approved a ban on that model, Novig exited the state to reassess its long-term strategy.
Entering the Federal event contract space
Now, the company is attempting another transformation. Novig has applied to register as a Designated Contract Market under Ludlow Exchange LLC, which would allow it to offer federally regulated event contracts. Approval from the CFTC would place Novig in the same regulatory category as Kalshi, Crypto.com, and Polymarket.
Fortinsky told Sports Business Journal that the company plans to phase out its sweepstakes offering and transition fully into a CFTC-regulated prediction market within roughly six months, pending approval. Trading volume reportedly climbed to more than $4 billion in 2025, a 10-fold increase from the prior year.
CFTC Chair Michael Selig has publicly advocated for federal oversight of event contracts, particularly amid state-level challenges to sports-based prediction markets. That federal-versus-state tension could define the landscape Novig is entering.
Novig’s specialized edge in a crowded field
Competition is fierce. Kalshi and Polymarket have raised billions at multibillion-dollar valuations, while traditional sportsbook operators such as DraftKings, FanDuel, and Fanatics are exploring similar territory. Novig’s pitch centers on being purpose-built for sports.
Fortinsky argues the platform does not charge commission fees to retail traders, instead monetizing through institutional liquidity providers. He believes that structure can offer sharper pricing and better incentives for active users.
The fresh capital is expected to fund marketing efforts and expand the team from roughly 50 employees to 65 in the coming months, according to a news story by SBC Americas. Engineering, marketing, legal, and customer experience roles are already posted.
As prediction markets continue to blur the line between financial trading and gambling, Novig is wagering that sports fans will embrace a platform designed specifically for them—not one retrofitted from politics or crypto speculation. Whether regulators and consumers agree will determine the ultimate return on this $75 million vote of confidence.
