Novig has secured a major regulatory breakthrough in the United States after receiving Designated Contract Market (DCM) status from the U.S. Commodity Futures Trading Commission (CFTC), becoming the first sports-focused prediction market to obtain the designation. The approval allows the company to operate under a single federal framework and expand its services across all 50 states.
The milestone marks a significant step forward for the rapidly growing prediction market sector, which has attracted increasing attention as an alternative to traditional sports betting. With federal oversight now in place, Novig will be able to offer its platform nationwide while adhering to CFTC regulatory standards.
Founded as a sports trading platform, Novig has positioned itself around a peer-to-peer exchange model rather than the traditional sportsbook structure. The company says its marketplace is designed to let users trade directly with one another, with prices determined by supply and demand rather than bookmaker-set odds.
The approval follows a period of rapid growth for the company. Earlier this year, Novig completed a $75 million Series B funding round and has since surpassed $5 billion in cumulative trading volume. The operator believes the new designation will accelerate its expansion while providing a more scalable and consistent regulatory environment.
Jacob Fortinsky, Novig’s co-founder and CEO, described the decision as a landmark moment for the business. He said the company was created with the goal of operating within a national regulatory framework and argued that demand for more transparent and efficient sports trading products continues to grow.
Under CFTC supervision, Novig plans to implement enhanced market surveillance measures, safeguards against manipulation and insider activity, and compliance controls designed to protect participants. The platform will continue to enforce a minimum age requirement of 21.
The approval arrives as competition in the prediction market space intensifies, with operators such as Kalshi, Polymarket, ProphetX and others seeking to expand their presence in the growing sector. Novig’s federal designation positions it among the leading companies aiming to reshape how sports-related event contracts are offered across the United States.