Novig Lands $75 Million to Revolutionize Sports Betting with a Federally Regulated Exchange

In a bold move that could reshape the entire sports betting landscape, Novig has secured a massive $75 million Series B funding round to fuel its vision of a fairer, trader-first sports prediction market. Led by crypto investment powerhouse Pantera Capital, the funding round also attracted top-tier backers including Multicoin Capital, Makers Fund, Edge Equity, and returning investors like Forerunner, Perceptive Ventures, and NFX.

With this latest injection of capital, Novig’s total funding now exceeds $105 million, positioning the company to accelerate its mission of transforming how sports fans interact with markets.

Disrupting a Broken System

Unlike traditional sportsbooks that profit when users lose, Novig operates as a commission-free peer-to-peer exchange where traders bet against each other rather than against the house. This fundamental difference means the platform’s success is directly aligned with user profitability—a revolutionary concept in an industry where the “house always wins.”

The numbers speak volumes: in 2025 alone, Novig’s trading volume skyrocketed tenfold, with annualized volume now surpassing $4 billion. But perhaps more telling is the platform’s win rate—users are reportedly 10 times more likely to profit on Novig compared to traditional sportsbooks.

The Federal Oversight Push

What truly sets Novig apart is its aggressive push for federal regulation. The company has formally applied to the Commodity Futures Trading Commission (CFTC) for approval to operate as a Designated Contract Market (DCM). If granted, this status would make Novig the first federally regulated sports prediction market in the United States, similar to how Kalshi operates in political and economic event markets.

This federal oversight could be game-changing. While traditional sports betting operates under a patchwork of state-by-state regulations, a CFTC-regulated exchange would fall under federal supervision, potentially allowing Novig to operate across all 50 states without the current geographical restrictions.

Why This Matters

The sports betting industry has long been criticized for its predatory practices. Traditional sportsbooks typically charge a “vig” (vigorish)—a built-in commission that ensures the house maintains an edge. They also frequently limit or ban winning customers, creating a system where success is punished.

Novig’s model eliminates these issues entirely. By removing the vig and creating a true exchange where odds are determined by supply and demand rather than bookmaker manipulation, the platform offers what could be the fairest possible environment for sports trading.

“Others are using prediction market technology to financialize new markets with unproven demand,” said Jacob Fortinsky, Novig’s co-founder and CEO. “We leverage it to fix broken markets where demand already exists.”

What’s Next for Novig

The fresh capital will fuel several key initiatives:

Liquidity expansion to ensure deeper markets and tighter spreads for traders
New market offerings beyond traditional sports to include esports, entertainment, and other prediction opportunities
Advanced trading tools including sophisticated charting, analytics, and order types
Mobile app development to enhance the user experience on the go
Regulatory compliance to meet CFTC requirements and expand into new jurisdictions

Investor Confidence

Pantera Capital’s managing partner, Paul Veradittakit, sees Novig as more than just another betting platform. “Their peer-to-peer exchange delivers what traditional sportsbooks can’t: better odds, fairer market structure, and alignment between platform success and user profitability,” he explained. “When 23% of users are profitable compared to 2% on traditional platforms, it’s clear this is a foundational change to the industry.”

The Broader Implications

If successful, Novig’s model could force the entire sports betting industry to evolve. Traditional sportsbooks would face pressure to improve their offerings, reduce vig, and treat customers more fairly. The federal oversight approach could also create a more standardized regulatory environment, reducing the complexity and costs associated with operating across multiple states.

The timing is particularly interesting given the explosive growth of sports betting in the United States. Since the Supreme Court’s 2018 decision to strike down the federal ban on sports betting, the industry has expanded rapidly, with more than $20 billion wagered annually. However, this growth has been accompanied by concerns about problem gambling, predatory practices, and regulatory fragmentation.

Looking Ahead

Novig’s ambitious vision represents a fundamental shift in how we think about sports betting. Rather than viewing it as gambling against the house, the platform reframes it as trading—applying financial market principles to sports outcomes. This approach could attract a new demographic of users who might be hesitant to engage with traditional sportsbooks but are comfortable with trading concepts.

The company’s focus on transparency, fairness, and user profitability stands in stark contrast to an industry often criticized for opacity and exploitation. As Novig continues to grow and potentially secures federal regulatory approval, it could become the blueprint for a new generation of sports prediction markets.

With $75 million in fresh funding and a clear path forward, Novig is positioned to lead what could be the most significant transformation in sports betting since legalization began. The question isn’t whether the industry will change, but how quickly traditional operators will adapt to this new paradigm where the house doesn’t always win.

Tags: sports betting revolution, prediction market technology, federal regulation CFTC, commission-free exchange, peer-to-peer trading, sports trading platform, Pantera Capital investment, sports betting innovation, fair sports markets, sports prediction exchange, trading volume growth, regulatory approval process, sports betting disruption, user profitability focus, sports market democratization

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