Betting News 
Silicon Valley-backed start-up Novig has launched its innovative sports prediction market in 42 states and Washington DC, utilizing a sweepstakes model that offers users a commission-free platform for sports betting. The launch introduces a new way to play, allowing users to engage with Novig Coins for fun or testing strategies, and Novig Cash for real cash prizes.
A New Approach to Sports Betting
Novig, available to users 21 and older, is revolutionizing the sports betting industry by offering an alternative to traditional sportsbooks. The platform is not available in Alabama, Colorado, Idaho, Louisiana, Michigan, Montana, Nevada, and Tennessee.
Jacob Fortinsky, Novig’s CEO and co-founder, emphasized the app’s appeal:
“Players are fed up with apps where the house always wins, and the odds are stacked against them. On Novig, 43% of users are profitable, compared to an industry average of just 3%. We’re excited to offer a commission-free sports prediction market nationwide.”
A Strong Backing and Colorado Setback
Last year, Novig secured $6.4 million in seed funding from a range of prominent investors, including Lux Capital, Y Combinator, and Joe Montana. In January 2023, the company launched its commission-free sports betting app in Colorado, where it initially received a license from the Colorado Division of Gaming.
However, despite its initial success in Colorado, state regulators did not approve Novig’s betting exchange system, forcing the company to operate as a traditional sportsbook. Three months after its debut, Novig shut down the app to work on significant updates. As of now, the platform remains unavailable in Colorado.
What Novig Offers
The Novig platform currently offers a wide range of betting options, including moneyline, spread, totals, and player props across NFL, NBA, WNBA, NCAAF, NCAAB, and MLB. The company has ambitious plans to expand its offerings in the coming months, including introducing parlays, same-game parlays (SGPs), futures, and more sports. Additionally, it will launch a web-based trading interface to enhance the user experience.
Regulatory Scrutiny of Sweepstakes Model
While Novig expands its reach, the company’s sweepstakes model has attracted the attention of regulators. Last month, the American Gaming Association (AGA) issued a memo urging state regulators and attorney generals to investigate sweepstakes-based gaming platforms, citing concerns about the lack of regulatory oversight and the potential risks posed to consumers.
The AGA highlighted that the sweepstakes model could undermine the economic integrity of the legal gaming market, especially given the rapid growth of sports betting across the country.
