A new wave of event-contract platforms is reshaping how fans wager, with Novig sports betting emerging as a well-funded challenger to entrenched prediction markets.
Novig raises $75 million to challenge Kalshi and Polymarket
As prediction platforms Kalshi and Polymarket capture the attention of both investors and regulators, sports-focused startup Novig has secured $75 million in fresh capital to take them on. The new Series B funding round, led by blockchain venture firm Pantera Capital, values Novig at $500 million, underscoring growing interest in sports-centric prediction products.
However, the company is entering a highly contested space. Kalshi and Polymarket have already established themselves as the leading venues for event contracts, while regulators continue to scrutinize how far prediction markets can push into areas resembling traditional gambling.
From Supreme Court ruling to prediction markets boom
Sports betting in the United States was once tightly restricted. That changed after a pivotal 2018 Supreme Court decision that allowed individual states to legalize wagering on major leagues such as football, basketball, and baseball. The ruling triggered a nationwide rollout of regulated sportsbooks and opened the door to new financial-style betting products.
Moreover, a 2024 court victory by Kalshi broadened the scope of contracts prediction markets can legally list. Platforms quickly expanded beyond weather and entertainment outcomes to cover politics, macro events, and sports. Today, Kalshi generates the vast majority of its trading volume from sports contracts, even as some U.S. states move to limit or close sports-based markets.
That said, Novig is positioning itself not around regulatory victories, but around a consumer message: existing options exploit users through high fees and opaque pricing, according to its founders.
Novig’s pitch: peer-to-peer, not playing against the house
“We started the company because we felt sports betting was broken,” cofounder Jacob Fortinsky told Fortune. “Our mission from day one was to build a platform really built for modern sports bettors in the most consumer-friendly, the most engaging, and the most profitable way possible.”
Fortinsky began developing Novig in 2021 during his senior year at Harvard, alongside cofounder Kelechi Ukah. The pair entered the startup accelerator Y Combinator in the following year, seeking to build a technologically advanced, trading-style sports platform while the regulatory backdrop for prediction markets remained uncertain.
However, that environment was fraught. Polymarket, which operates on blockchain rails, was barred from serving U.S. users in 2022 after regulators determined it was offering unlicensed betting products. The case highlighted the risks for any platform straddling the line between gambling and financial markets.
Regulatory evolution and the shift toward CFTC oversight
Novig initially pursued a conventional path by registering as a regulated sports betting operator in Colorado. It later pivoted to a sweepstakes-style model in an effort to broaden reach while staying within state rules. Neither approach, however, allowed Novig to operate nationwide, and the sweepstakes structure drew new legal pushback from state regulators.
Now, Novig is applying to operate under the supervision of the Commodity Futures Trading Commission (CFTC). Fortinsky says he hopes the regulatory approval process can be completed within roughly six months, which would move the platform more squarely into a financial-market framework rather than being treated as a casino-style sportsbook.
In his pitch, Fortinsky argues that Novig’s event markets are distinct from traditional operators such as FanDuel. Because trades are matched on a peer-to-peer basis, users are not betting against the house. In theory, that structure should translate into better pricing for active sports traders.
Fees, “vig,” and Novig’s commission-free model
Where Novig sees its clearest differentiation from Kalshi is cost. The startup argues that Kalshi’s fee schedule makes trading prohibitively expensive for frequent or smaller participants. By contrast, Novig is commission-free for retail traders, a feature embedded in its brand: the name is a play on “vig,” the traditional rake sportsbooks charge on bets.
Instead of monetizing through customer-facing fees, Novig plans to charge institutional participants that provide liquidity on the platform. That setup means everyday users are often trading against so-called “smart money” rather than a centralized house. However, Fortinsky says around 20% of Novig bettors are likely to be profitable, a figure he describes as “still-depressing” but significantly higher than typical win rates on incumbent platforms.
In Fortinsky’s view, this structure makes the novig sports betting platform feel closer to a financial exchange than a casino, aligning incentives between the company and its most active users.
Built for sports fans, not crypto natives
On a more fundamental level, Fortinsky argues that Novig has been designed from the ground up for sports fans. Kalshi and Polymarket initially emphasized contracts on policy, macro events, and niche topics, only later expanding into sports. Novig, by contrast, is framing itself as a pure sports product with financial-market mechanics running under the hood.
“Our basic bet as a company is that the median sports fan is far more likely to use an app whose brand and whose product is really built with sports in mind, rather than with crypto or war in South America,” Fortinsky said. Moreover, the company is betting that a cleaner user experience and tighter spreads will attract serious fans who already follow data and odds closely.
Whether that approach proves healthier for sports culture is an open question. Critics, alongside various state authorities, argue that modern prediction platforms are effectively a new wrapper for gambling, raising familiar concerns around addiction and consumer protection.
Gambling or financial trading? The ethical and legal debate
Fortinsky rejects the idea that Novig is simply another betting shop. “Ultimately financial trading and betting are sort of converging,” he said. “In a colloquial sense, we certainly don’t view what we’re doing as gambling.” To him, sports wagering is becoming part of a broader spectrum of risk-taking activities, from options trading to fantasy contests.
The distinction may appear subtle, yet some regulators share the view that event contracts fit within the domain of financial oversight rather than pure gaming. CFTC chair Michael Selig recently argued in a Wall Street Journal opinion piece that such markets fall squarely under his agency’s remit and can “serve legitimate economic functions.” That position, if solidified, would provide a clearer pathway for platforms like Novig to operate at scale.
However, the blurred ethical lines around athlete and league involvement persist. Fortinsky maintains that, for many fans, placing small, informed wagers is simply an extension of their existing fandom rather than a separate vice.
The changing fan experience and what comes next
For Fortinsky, sports wagering is not just about profit but about deepening engagement. “For many sports fans, it deepens their engagement, deepens their enjoyment and their fan experience,” he said. In his view, the core problem is not betting itself but what he describes as a “commoditized product” dominated by casino-affiliated operators seeking to maximize revenue at the expense of fans.
Novig is betting that a peer-to-peer market structure, a focus on sports-first branding, and a commission-free model for retail users can carve out space in a crowded field. However, its success will hinge on navigating evolving regulation, differentiating from established players like Kalshi and Polymarket, and convincing users that trading on outcomes should look more like investing and less like a trip to the casino.
In summary, Novig’s $75 million Series B led by Pantera Capital positions the startup as a major new entrant in U.S. sports-focused prediction markets, but its long-term impact will depend on regulation, user adoption, and how the line between betting and trading continues to blur.
