Novig Raises $75M, Eyes Expansion As Prediction Market Under CFTC Oversight

Feb 19th, 2026 12:15 PM EST

The sports-driven platform Novig raises $75 million in Series B funding. Now what? If prediction markets are the new Wall Street of sports betting, Novig just rang the opening bell. The round led by blockchain venture firm Pantera Capital. values the company at approximately $500 million and brings Novig’s total capital raised to more than $105 million.

The funding comes at a pivotal moment for the prediction market industry, which is locked in regulatory battles with several states while simultaneously drawing increased investor attention. Meanwhile, dual-currency sweepstakes-based sites are coming under increased scrutiny by state legislators, regulators, and attorneys general.

A Sports-First Exchange Model

Founded in 2021 by CEO Jacob Fortinsky and CTO Kelechi Ukah, Novig operates as a commission-free, peer-to-peer exchange. Instead of traditional sportsbook pricing where bettors wager against the house, Novig runs an order-book model where traders compete directly with one another and market forces determine pricing.

The platform does not charge commissions to retail users. Instead, it collects fees from institutional participants providing liquidity.

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

Fortinsky framed the model as a structural shift away from traditional sportsbooks.

“Our mission is to democratize and financialize sports markets, and we're proud of the fact that Novig users are 10 times more likely to win than on traditional sportsbooks,” he said.

Pantera Capital Managing Partner Paul Veradittakit echoed that sentiment in a release, calling the exchange model “a foundational change to the industry.”

He noted that approximately 23% of Novig users are profitable, compared with an estimated 2% at traditional sportsbooks.

Federal Path: CFTC Application Filed

Novig has submitted an application to the Commodity Futures Trading Commission (CFTC) to become a licensed Designated Contract Market. If approved, that status would allow Novig to operate in all 50 states under federal oversight.

That distinction is critical.

Federally regulated exchanges such as Kalshi and Robinhood have been engaged in legal battles with multiple state regulators. They argue sports event contracts function as unlicensed sports betting. The CFTC this week officially took sides in defending its jurisdiction over event contracts.

Much of the recent growth in prediction markets has been driven by sports trading, an area Novig is targeting directly. Upwards of 80% of the trading volume on Kalshi is based in sports-event contracts. And Kalshi traded more than $914 million on Super Bowl 60 and non-game related markets.

Positioning Against Kalshi and Polymarket

Novig is positioning itself as a sports-first alternative to larger rivals. It argues those platforms were not built specifically for sports traders and can be costly for frequent users.

Most prediction market volume today centers on sports, yet the infrastructure has not been optimized for sports-focused liquidity or trading tools, Novig said.

The new capital will be used to expand product development, deepen liquidity pools, and roll out advanced trading features. Novig has grown its workforce to more than 50 employees.

The Bigger Picture

The $75 million raise signals that institutional capital continues to pour into the prediction market sector despite ongoing regulatory friction at the state level.

Court rulings broadening the scope of event-based contracts have emboldened operators and investors alike. At the same time, state gaming regulators, legislators, and law enforcement officials have pushed back, arguing sports contracts resemble traditional wagering products subject to state licensing and taxation.

Novig is betting that federal regulation — and a sports-native exchange model — will be the winning formula.

If its CFTC application is approved, Novig could become one of the first true national sports trading exchanges operating under a unified federal framework.

And if investors are right, the house may no longer always win.

About the Author

Bill Speros

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Bill Speros is an award-winning journalist and editor whose career includes stops at USA Today Sports Network / Golfweek, Cox Media, ESPN, Orlando Sentinel and Denver Post.