High-frequency sports trading platform Novig has successfully closed a $75 million Series B funding round, significantly bolstering its balance sheet as it navigates a shifting regulatory landscape.
The capital injection, led by major crypto-focused venture firms, comes as the platform moves away from the contentious state-regulated sweepstakes model toward a federal pathway via the Commodity Futures Trading Commission (CFTC).
A Trader-First Sports Prediction Market
Novig positions itself as a commission-free, peer-to-peer exchange designed specifically for sports traders, contrasting its model with traditional sportsbooks that operate against the player.
The company stated:
“Although sports account for the majority of activity on most prediction market platforms, those products are not built with sports traders in mind. Novig, by contrast, is built for sports fans, delivering a fair, transparent, and commission-free trading experience.”
The Federal Shift: Pursuing DCM Registration
The $75 million raise follows a turbulent period for the sweepstakes sector. In late 2024, Novig pivoted to a sweepstakes model but quickly exited several states, including New Jersey and Arizona, due to intensifying regulatory pressure on the vertical.
In response, Novig applied for registration with the CFTC as a Designated Contract Market (DCM) in January. If approved, the platform would operate under federal commodities law rather than state-level gaming licenses, placing it in the same regulatory class as industry leaders like Kalshi and Polymarket.
Investor Confidence Amid Scrutiny
Investors appear to be betting that the DCM route is the most sustainable path for high-volume trading platforms. This confidence is bolstered by the CFTC’s recent assertive stance under Chair Mike Selig, who has signaled intent to modernize federal oversight of event contracts.
While state regulators continue to target sweepstakes as “unlicensed gambling,” the federal pathway offers a unified legal framework that could define the next decade of sports trading in the U.S..
