Novig joins regulated prediction market surge

The rapid expansion of prediction markets in the United States has taken another step forward, with Novig announcing it has secured designation as a Designated Contract Market (DCM) from the U.S. Commodity Futures Trading Commission (CFTC).

In short, that means it can offer its prediction platform — which has already surpassed $5 billion in cumulative trading volume — across all 50 states.

Chief executive and co-founder Jacob Fortinsky said federal oversight enables the company to scale while improving trust and fairness.

“We’re building a fundamentally different model where participants operate within a transparent market, not against the house,” he said.

“From day one, our vision has been to operate within a single national framework that raises the standard for the entire category.

“Novig is the first sports prediction market built by sports traders for sports traders, and the momentum we’ve seen to date reinforces that there is real demand for a more efficient, and ultimately more profitable way for sports fans to participate in sports markets.”

Prediction platforms have emerged as a major threat to the traditional sports betting market, operating effectively like exchanges.

Instead of betting against a bookmaker, users trade with each other, with prices set by supply and demand. Supporters of the concept say this makes the system more transparent and fairer, while also removing limits that often apply to successful bettors.

While there have been concerns about insider trading — especially when it comes to event contracts surrounding politics and pop culture — Novig insists it incorporates safeguards typically associated with established exchanges, including market surveillance, anti-manipulation protections, and strict compliance standards.

It also says it enforces a minimum participation age of 21.

Kalshi and Polymarket have already established themselves as market leaders, processing billions of dollars in trading volume and pushing prediction markets into the spotlight by allowing users to trade on everything from sports and elections to economic data.