Novig CEO Jacob Fortinsky Feels Breeze At His Back, Despite Prediction Market Headwinds

By Bill Speros

Mar 24th, 2026 3:00 PM EDT

CEO Jacob Fortinsky and Novig are all-in when it comes to sports and prediction markets.

The peer-to-peer sports trading app operates via a dual currency, sweepstakes model.

But that’s only temporary.

Once Novig receives approval from the Commodities Futures Trading Corporation, it will enter the legal U.S. prediction market space as a sports-exclusive designated contract market (DCM) operator and discard its sweepstakes model.

Prediction markets have grown into the center of gravity in the space formerly known as gambling.

And the news never sleeps.

Among the recent headlines of note - good and bad:

Arizona Files Criminal Charges Against Kalshi

Kalshi Banned In Nevada After Judge Enters TRO

Kalshi Earns a $22 billion valuation

Bi-Partisan Senate Bill Would Ban Sports, Casino Prediction Markets Trades

Prediction Markets Face Insider Trading Claims On Iraq War Trades

Novig's Fortinsky remains unbowed by headwinds facing prediction markets both in the courts and, potentially, in Washington.

He won’t comment on any pending legislation, but his forecast is clear.

“The technology isn't going anywhere. On two extremes, you have people that say this should be entirely unregulated, and, others who say this should be entirely prohibited. We support reasonable rational regulation around the prediction market space. And we strongly believe it's better for trading on sports event contracts to be regulated at the federal level rather than the state level,” Fortinsky told Bookies.com in an interview this week. “I think since the repeal of PASPA, it's become clear that states do a very poor job at overseeing this space and that we believe that this ought to be regulated by the CFTC and by the federal government. It's better for consumers, it's better for the industry, it's better for innovation and technology. And so I think it's a shame that there are people that are trying to send us back to the states.”

‘The Biggest Story Of The Year’

Amid the non-stop din of prediction market news, one story of note remains paramount for the 28-year-old entrepreneur: A “Memorandum of Understanding” issued between Major League Baseball and the CFTC made public on March 19.

The two sides said they will "discuss, cooperate, and exchange information" concerning the integrity of MLB and prediction markets. There's nothing set in stone beyond that. But MLB's participation may open the door for other big leagues and NCAA moving forward.

“That’s the biggest story of the year,” Fortinsky told Bookies.com. “For a while, you had the big sports leagues all saying, ‘We're not going to touch prediction markets. We're firmly in bed with the OSB operators.’ Now, they're changing their tune and they're becoming more comfortable. I think they're beginning to recognize that prediction markets are the future of sports markets, and it makes sense for them to be involved rather than be on the sideline”

A year ago, speaking to Bookies.com, the commissioners of MLB, the NBA, NHL, and NCAA President Charlie Baker remained either opposed, concerned, or curious about prediction markets.

The NBA and NFL – for now – remain both a firm “no” when it comes to any cooperation with prediction platforms. But that could soon change. Meanwhile, the NHL, MLS, and UCF/TKO have all tied the prediction market knot. Last week, Baker sent a second letter to the CFTC outlining multiple areas the NCAA would like to see prediction markets address.

'Too Important Of An Issue To Left Up To The States'

Fortinsky, who founded Novig in 2021 with Kelechi Ukah while both were students at Harvard, knows all too well that the speed of technology and markets far outpaces that of regulation, and in many cases, acceptance.

Still, there is movement.

“The integrity of these markets are the utmost concern of the leagues and of the government. I think the fact that it's too important of an issue to be left up to the states, and I think the leagues are starting to see that," Fortinsky said. "I'm excited. I'm encouraged by the MLB's willingness and excitement to partner with the CFTC. And I think it's in the best interest of everyone who cares about the integrity of sports markets.”

Fortinsky and Novig have secured more than $105 million in funding. The company currently boasts a $500 million valuation. The prevailing winds appear to be at its back.

Legal sports betting outside Nevada turns 8-year-old in May. At NextIO in New York earlier this month, Fortinsky spoke of a “paradigm shift” in sports betting.

“Consumers are increasingly viewing this as less of a gambling product and more as a financial product. It it makes sense to regulate it as such. I think people interact with sports markets the same way they interact with the stock market or with crypto markets. And it's less akin to playing slots. It's much more similar to trading on other types of event contracts,” Fortinksy said. “We think it's inevitable and it's a good thing that this is being seen not only by consumers as more of a financial product, but now also by regulators and the general public. Markets over time trend towards more efficiency, to more consumer-friendly platforms. We think the prediction market offering is far, far better on the whole than the sportsbook offering."

According to the company, trading volume increased tenfold in 2025, with annualized volume now exceeding $4 billion.

Novig’s Future Rooted In Technology

How does Novig plan to succeed – and win – in what will soon to be a crowded prediction market space offering only sports-related trades?

Novig owns its own technology. Many other operators who offer, or plan to offer, sports-based prediction market trades use the technology of other providers such as CME, Robinhood, Kalshi, or Polymarket. That means revenue sharing. And an inherent bias against innovation.

That won’t be a concern with Novig.

And the fight, ultimately, won’t be won on pricing alone.

“We have the best prices and the best user experience. Whether you care about price, or usability, we have the best product. We're entirely commission free - at the moment - and so that allows us to have more efficient markets than any of our competitors. We also have many more sports markets than most of our competitors, whether that's in the form of player props or multi-leg parlays, correlated parlays. We have the strongest product offering there,” Fortinsky said.

“It just comes down to having the best customer experience, having the most efficient markets. And on Novig, you are 10 times more likely to be a winner in the long run than our competitors. So ultimately, I think it comes down to getting a similar, but better user experience and far better prices.”

Novig Met With Resistance From State Regulators

Under the name of Ludlow Exhange LLC, Fortinsky and Novig registered for CFTC certification as a DCM on January 21. The application remains pending. Thirteen entities have CFTC applications to become DCMs pending filed in the past year. Fortinsky would not give a timetable on any potential CTFC approval.

Right now, the CFTC had just one commissioner, Chair Michael Selig. But it has begun to staff up

Fortinsky navigated a turbulent few years marked by repeated strategic pivots as Novig tried to play by the old rules. The company launched as a betting exchange, initially operating in New Jersey and Colorado — the only two U.S. states where it could secure exchange licensing. After just four months, Novig shuttered its Colorado operations and overhauled its model entirely. In general, state regulators balked.

Fortinsky met with a combination of institutional resistance, gaping holes in technological knowledge, and, at times, straight-up antipathy.

They were just categorically anti-startups basically," he said.

The company relaunched under a sweepstakes framework. But New Jersey, California, Connecticut, Montana, New York, Indiana and Nevada have banned dual-currency, sweepstakes operators.

Novig latest pivot into the prediction market space will likely be its last.

"We've also proven our ability to pivot from a regulatory perspective a couple times successfully and to do that swiftly and to understand the core user better than our competitors," Fortinsky said. "When we were launching our sweeps product, many people said to me, 'You're delusional if you think you're going to catch up to X company or Y company.' And four or five months later, we were significantly larger than those companies. And so I think it's ultimately winners in this space are determined by operating capability, and I think there's no stronger team or operators than the Novig team."

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