Novig Records $125 Million Notional Volume in First Week of CFTC-Approved Sports Prediction Market

Novig launched its federally regulated prediction market on August 4 after receiving approval from the Commodity Futures Trading Commission to operate as a designated contract market. The platform recorded more than $125 million in notional trading volume during its first week, according to figures shared by the company. Novig’s opening-week trading activity exceeded the first-week sports contract volume recorded by Kalshi, Polymarket U.S., Underdog and DraftKings’ DKeX.

Its peak day produced $26.3 million in volume. “Our highest-volume day since launching nationwide…was $26.3 million in trading volume,” co-founder and CEO Jacob Fortinsky told CNBC. Parlays represented approximately one-third of activity, while baseball generated the highest engagement.

Focus on Sports Contracts and User Safeguards

Novig has concentrated on sports-linked event contracts rather than perpetual futures or hedging tools aimed at financial participants. “Our focus is on markets tied directly to sports and competition,” Fortinsky said. The company shifted from a Colorado sports betting exchange to a sweepstakes model in 2024 before adopting the CFTC framework.

It imposed a 21-and-over age limit after reviewing risks for younger users. “We’ve listened to the public… the 18- to 20-year-old demographic in some ways is uniquely susceptible to misbehavior in certain ways, and so we currently are 21-plus in our current product offering,” Fortinsky previously told CNBC. “We encourage the rest of the industry to follow suit.” Responsible measures include identity verification, deposit and loss limits, cooling-off periods and self-exclusion.

State-Level Legal Disputes and Enforcement Risk

Several states contend that sports prediction contracts constitute gambling subject to local rules. Novig has sued New York, Massachusetts, Washington, New Mexico and Wisconsin seeking to establish that CFTC oversight precludes state gambling enforcement. Its initial bid for a temporary restraining order in New York was denied by a federal judge in the Southern District of New York.

Gaming attorney Daniel Wallach commented on August 9 that Novig’s chances in Massachusetts, New York and Washington “are dim” after recent decisions supporting state positions. The CFTC maintains authority over designated contract markets, while states argue certain sports contracts resemble wagering. Novig continues to assert that federal regulation separates its products from traditional sports betting.

The launch arrives as Kalshi, Polymarket and Polymarket U.S. post high monthly volumes and expand product lines. Novig’s sports emphasis aligns with approaching NBA and Premier League seasons, but outcomes in the pending state cases will shape its operational footprint.

Reporting: World Casino News

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.