Novig Raises $75M to Build Trader-First Sports Prediction Market
Novig secures $75 million to expand its zero-commission sports prediction market, marking a slowdown-free outlook for the prediction market vertical.
The prediction market arms race just escalated.
Novig has raised $75 million in fresh funding as it looks to expand its so-called trader-first sports prediction market model. This comes just weeks after Novig applied to the Commodity Futures Trading Commission for approval to operate as a U.S. prediction market.
The capital injection positions the company to accelerate product development, liquidity growth, and regulatory expansion as scrutiny around event contracts intensifies.
The funding round comes as federally regulated prediction markets are gaining momentum and drawing increased attention from both regulators and traditional sportsbooks.
A Trader-First Model
Novig differentiates itself from traditional sportsbooks by eliminating the house edge. Instead of taking vig on wagers, the platform operates a peer-to-peer exchange model where users trade contracts directly against one another.
In theory, that means:
- No built-in bookmaker margin
- Prices determined by supply and demand
- Users can both buy and sell positions
- Traders can exit positions before event resolution
This structure resembles financial markets more than conventional sportsbooks.
The company has positioned itself as offering sharper pricing and better odds for high-volume bettors who are sensitive to traditional sportsbook margins.
The $75 Million Raise
The $75 million Series B round is intended to support expansion across several fronts, including product engineering, liquidity incentives, and regulatory compliance.
Where the capital is expected to go:
- Platform development and trading infrastructure
- Liquidity growth to support tighter pricing
- Marketing and user acquisition
- Regulatory and legal resources as oversight increases
Prediction markets have moved from niche concept to mainstream debate over the past year. With more capital entering the space, competition is accelerating.
CFTC Oversight and Regulatory Backdrop
Novig operates within a regulatory framework tied to event contracts overseen by the Commodity Futures Trading Commission. That structure differentiates it from state-regulated sportsbooks. CFTC Commissioner Michael Selig has made his support for prediction markets well known in the last few weeks.
Federal oversight has drawn both support and opposition from various stakeholders. Some state gaming regulators and tribal groups argue that prediction markets blur the line between derivatives trading and sports betting. Others view them as a distinct financial product.
The regulatory clarity around event contracts remains a central issue for the sector. Companies operating under CFTC frameworks are effectively competing alongside state-regulated sportsbooks, but under different compliance regimes.
From an industry standpoint, that regulatory tension is not going away.
What This Means for Sports Betting
For traditional sportsbooks, the rise of exchange-style platforms represents both a competitive threat and a strategic signal.
High-frequency bettors and professional traders often gravitate toward markets with:
- Lower transaction costs
- Transparent pricing
- Ability to hedge or trade out of positions
If prediction markets gain broader acceptance, sportsbooks may face pressure to adjust margins or expand exchange offerings.
At the same time, liquidity remains the biggest challenge for exchange models. Without sufficient trading volume, spreads widen and pricing becomes less efficient. That is where fresh capital becomes critical.
Novig’s funding round signals investor confidence that the prediction market model can scale.
The Bigger Picture
The sports wagering landscape is fragmenting into multiple verticals:
- Traditional fixed-odds sportsbooks
- Peer-to-peer exchanges
- Federally overseen prediction markets
Each operates under a slightly different regulatory structure and appeals to a slightly different bettor profile.
Novig’s $75 million raise does not guarantee dominance. But it reinforces that the trader-first model is no longer experimental. It is capitalized, regulated, and increasingly competitive.
As federal oversight discussions continue and state regulators push back on certain event contract structures, platforms like Novig are betting that a market-driven pricing model will resonate with sophisticated bettors.
The next phase of sports wagering may not be about bigger bonuses. It may be about better pricing.
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