The funding round was led by Pantera Capital. Contributions came from Multicoin Capital, Makers Fund, Edge Equity, and Forerunner.
The strategic context here is regulation. According to Novig, it is working to become a Designated Contract Market (DCM) licensed by the CFTC, a status used for exchanges operating under the CFTC’s oversight.
Novig’s Growth Claims and Product Focus
Novig is trying to carve out a niche as a sports-first trading platform, embracing an exchange model over a traditional sportsbook experience. It reported a 10x increase in trading volume in 2025 and that its annualized trading volume has surpassed $4bn.
The company has also been operating under a sweepstakes model, according to industry reports. That’s a model that certain US operators have adopted while operating in a state of regulatory limbo.
Why the Regulatory Context Matters Right Now
Novig’s timing is notable because prediction markets, which are often connected to sports outcomes, are experiencing increasing pushback about whose jurisdiction it is (state gaming regulators or the federal derivatives regulatory regime). As illustrated by recent court and enforcement actions related to rival operator Kalshi, the playing field is decidedly uneven:
- In Tennessee, a federal judge stayed a regulatory action to prohibit Kalshi’s sports event contracts;
- In Massachusetts, a judge ordered Kalshi to cease sports-event contracts in the state unless it obtained a gaming license.
- In Nevada, state regulators sued to prohibit Kalshi, while the CFTC filed in support of federal jurisdiction in related litigation.
Wrapping Up
For Novig, the possible federal approval could still conflict with what is happening on the state level in terms of resistance, uncertainty, and enforcement. The company has new capital to invest in product, liquidity, and compliance. The question is whether the US will end up with a stable framework for sports-related event contracts, or face a long period where growth depends on litigation outcomes.
