sports 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.

A full day of hearings has left the Missouri sports betting initiative lawsuit unresolved, with Judge Daniel Green neither dismissing the case nor delivering a final ruling. The case centers around whether the sports betting ballot question will be featured in the upcoming general election, as the Sept. 10 deadline to finalize ballots quickly approaches.

Key Points of the Lawsuit

The lawsuit, filed by Jacqueline Wood and Blake Lawrence on Aug. 21, contends that Secretary of State John “Jay” Ashcroft miscalculated the number of necessary valid signatures in some of Missouri’s Congressional districts. The plaintiffs argue that the initiative lacked enough valid signatures in the first and fifth Congressional districts, while Ashcroft’s office maintains that the measure exceeded the required threshold.

According to the Secretary of State’s Office, the Winning for Missouri Education campaign needed 25,632 valid signatures in the first Congressional district but submitted 55,864 signatures, with 25,714 deemed valid—just 82 signatures over the required threshold. However, the plaintiffs argue that the number of necessary signatures should be over 30,120 due to an updated electoral map from the 2020 gubernatorial election.

Courtroom Debate Over Signature Validity

During the hearing, both sides presented witnesses, including a member of the Winning for Missouri Education campaign and a handwriting expert, to challenge or defend the validity of the submitted signatures. An electoral expert testifying for the plaintiffs claimed he found issues with 2,500 to 3,000 signatures in the first district. The defense countered with a handwriting expert, stating that it is difficult to determine signature validity without 10 to 20 examples of confirmed valid signatures.

While Judge Green did not agree to the defense’s motion to dismiss the case due to a lack of evidence, he allowed the hearing to continue without making a decision by the end of the day.

What’s at Stake?

If the lawsuit is dismissed or no ruling is made by Sept. 10, the sports betting ballot question will automatically appear on the Nov. 5 general election ballot. However, if Judge Green rules in favor of the plaintiffs, the measure could be removed from the ballot or the election results could be invalidated if the case is resolved after voters cast their ballots.

Missouri voters are showing increasing support for legalized sports betting, with a recent Saint Louis University/YouGov poll of 900 likely voters revealing 50% in favor of a constitutional amendment to legalize sports betting, while 30% oppose it, and 21% remain undecided. Support is strongest among Democrats and voters in the St. Louis and Kansas City metro areas.