Novig Wins CFTC Approval to Operate as First Sports-Focused Federally Regulated Prediction Market
Novig has secured CFTC designation as a Designated Contract Market, becoming the second platform to receive federal approval in a week and positioning itself to launch sports-only prediction markets across all 50 states.
Novig, the New York-based sports prediction market platform, has received designation from the U.S. Commodity Futures Trading Commission as a Designated Contract Market, clearing the way for the company to operate as a federally regulated prediction exchange across all 50 states under a single national regulatory framework.
The approval, announced on June 16, came just days after ProphetX received its own CFTC designation — making the two back-to-back approvals a defining moment in the rapidly evolving prediction market landscape. Novig’s designation was described as “one of the fastest of its kind in CFTC history.”
What Makes Novig Different
Founded by Jacob Fortinsky and Kechi Uk, Novig has positioned itself as a platform built specifically for sports traders. Unlike broader prediction markets that cover politics, culture, and finance, Novig focuses exclusively on sports — a distinction that sets it apart from competitors like Kalshi, which spans a wide range of event types.
Prior to the federal designation, Novig had operated under a Colorado state sports betting license and briefly ran a sweepstakes-based model before making the pivot to the CFTC-regulated exchange approach. The company reports that it has already processed more than $5 billion in trading volume through its peer-to-peer model, which allows users to trade directly with each other rather than betting against a traditional sportsbook.
Under its DCM designation, Novig will be subject to enhanced market surveillance, protections against manipulation and insider activity, and comprehensive compliance standards. The platform also carries a 21-and-older age requirement and will enforce it across all 50 states.
A Crowding Field, With High Stakes
Novig enters a competitive market that now includes Kalshi, DraftKings Predictions, FanDuel Predicts, and ProphetX, all of which have either received CFTC designation or operate under existing federal frameworks. The pace of new approvals signals that the CFTC is moving quickly to bring the sports prediction market space under a coherent regulatory umbrella — a shift that has significant implications for traditional sportsbooks and for state regulators who have pushed back against what they view as an encroachment on state gaming jurisdiction.
For bettors and traders, the practical impact of another CFTC-designated platform is more competition, potentially tighter pricing, and a wider range of contract types. Novig has said it will offer sports event contracts with the exchange model’s inherent benefits: no vig in the traditional sense, with fees replacing the traditional margin built into sportsbook lines.
The timing is notable. With the 2026 FIFA World Cup already driving record activity on platforms like Kalshi and Polymarket, Novig’s launch into a fully regulated national framework could not come at a better moment for capturing interest from sports fans newly drawn to prediction-style wagering. The broader prediction markets landscape is expanding at a pace that few in the industry anticipated even a year ago.