Novig, a startup building a peer-to-peer sports trading platform, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate as a designated contract market (DCM). This approval allows Novig to offer a platform where users can trade sports event outcomes directly against one another, rather than betting against a house or bookmaker.
The CFTC's approval marks a significant regulatory milestone for Novig, which aims to differentiate itself from traditional sportsbooks and prediction markets by focusing on a peer-to-peer model. The company has stated that its platform will use a central limit order book, similar to financial exchanges, to match buyers and sellers of contracts on sports events.
Novig's entry into the regulated prediction market space comes amid increasing competition. Other firms, such as Kalshi and PredictIt, have also sought regulatory approval for event contracts, though they often focus on political and economic events rather than sports. The CFTC has been actively reviewing the legal status of such platforms, particularly after a 2024 court ruling that allowed Kalshi to list election contracts.
Novig has not yet announced a specific launch date for its platform but has indicated that it will begin operations in the coming months. The company has raised venture capital funding from investors including BoxGroup and Y Combinator, according to public filings.
