Sweepstakes Model
    Updated April 20268 min read

    Novig Overview (2026)

    Exchange-style sports trading with no retail fees — but there's a critical distinction: Novig currently operates as a sweepstakes model, not a CFTC-regulated exchange. Here's what that means for traders.

    Regulation

    Sweepstakes

    Markets

    Sports

    Fees

    $0

    CFTC

    Pending

    65TRUST SCORETrusted

    Our Take

    Novig offers a zero-fee sports trading experience, but operates under a sweepstakes model — not CFTC regulation. A DCM application was filed January 2026 via Ludlow Exchange LLC. Until approved, Novig lacks the federal commodity exchange protections that platforms like Kalshi and Polymarket provide. Use with that distinction clearly understood.

    Key Strengths

    01

    Zero retail trading fees

    No trading fees for retail users (sweepstakes model); makes money via data monetization and market making

    02

    Exchange-style order book

    Tighter spreads vs fixed-odds sportsbooks

    03

    Well-funded

    $75M Series B (Feb 2026, Pantera Capital led); $105M+ total raised

    04

    CFTC path underway

    DCM application filed Jan 2026; platform has a regulatory roadmap

    05

    Sports-first UX

    Built specifically for sports traders, not a generalist platform

    Key Considerations

    01

    Not CFTC-regulated

    Sweepstakes model lacks federal commodity exchange protections

    02

    State restrictions

    Blocked in ~10 states due to anti-sweepstakes laws

    03

    Sports-only focus

    No economics, politics, weather, or finance markets

    04

    Regulatory uncertainty

    CFTC application outcome is not guaranteed; sweepstakes laws can change

    05

    No CFTC customer protections

    Unlike DCM platforms, not subject to CFTC segregated funds rules

    Compare Platforms

    See how Novig stacks up

    Important: Novig Is NOT CFTC-Regulated

    Currently sweepstakes model (Ludlow Exchange LLC DCM application pending CFTC, filed Jan 21, 2026); plans to transition to full CFTC-regulated prediction market

    This is a fundamental difference from Kalshi, Polymarket, and ForecastEx — which are CFTC-designated contract markets. Until Ludlow Exchange LLC's DCM application is approved, Novig operates under sweepstakes law, not federal commodity regulation.

    Sports analytics dashboard with probability calculations
    Novig targets sophisticated traders with its low-vig prediction market model

    What Is Novig?

    Novig is a US-based sports trading platform that uses an exchange-style order book — similar to how CFTC-regulated prediction markets work — but currently operates under a sweepstakes legal framework. This allows it to offer trading in most US states without CFTC authorization.

    The platform's core differentiator is its fee structure: Novig charges no retail trading fees. Rather than collecting per-trade commissions, the company monetizes through data sales and market making. To understand how exchange-style trading differs from sportsbooks, read our guide on how prediction markets work. You can also compare all platforms to see where Novig fits in the landscape.

    Key Facts at a Glance
    Regulatory status: CFTC DCM pending
    Primary markets: Sports (primary focus)
    Trading fees: No trading fees for retail users (sweepstakes model); makes money via data monetization and market making
    Funding: $75M Series B (Feb 2026, Pantera Capital led); $105M+ total raised
    Unique feature: Exchange-style trading with no retail trading fees; sweepstakes model awaiting CFTC DCM approval

    CFTC Registration Status: Pending

    On January 21, 2026, Ludlow Exchange LLC — the entity behind Novig's planned regulated exchange — filed a Designated Contract Market (DCM) application with the CFTC. That application is currently under review. Track all pending applications on our full regulatory tracker, or see how the CFTC has handled prediction market platforms in our CFTC enforcement overview.

    Not (Yet) CFTC-Regulated

    Novig does not currently hold a CFTC DCM or DCO designation. It operates under sweepstakes law.

    Application Filed Jan 2026

    Ludlow Exchange LLC submitted its DCM application to the CFTC on January 21, 2026. Review timelines vary.

    Planned Transition

    Novig plans to transition to a fully CFTC-regulated prediction market upon DCM approval.

    How This Differs from Regulated Platforms

    • Kalshi, Polymarket/QCX, ForecastEx — Hold active CFTC DCM designations. Subject to CFTC oversight, reporting, and customer protection rules.
    • Novig — Currently sweepstakes model. CFTC application pending. Not subject to the same federal commodity trading regulations as DCMs.
    Data analytics and algorithmic trading technology
    Novig's exchange model minimizes the house edge for experienced prediction traders

    Fee Structure

    Novig's zero-fee model is its headline feature. Unlike Kalshi (which charges a formula-based entry fee — highest at 50/50 odds, max 1.75¢, near-zero for longshots) or traditional sportsbooks (which embed vigorish in odds), Novig retail traders pay no commissions. See how this stacks up in our full fee comparison across all 16 platforms, or use the fee calculator to estimate costs for your trading volume.

    Fee TypeNovigKalshi
    Trading FeesNone (retail)≤1.75¢/contract (formula-based)
    Exit / Sell FeeNoneentry only (sell/exit is free)
    Revenue ModelNo trading fees for retail users (sweepstakes model); makes money via data monetization and market makingPer-trade trading fee (charged when you buy at market price)

    Scales with odds: max 1.75¢ at 50/50, near-zero for longshots.

    Politics/Policy MarketsNot primary focusPolitics and policy markets: zero taker fees, zero maker fees

    Sports Markets: Novig's Core Focus

    Unlike CFTC-regulated exchanges that span economics, politics, weather, and finance, Novig is built primarily around sports. Market coverage: Sports (primary focus).

    The exchange-style order book — as opposed to sportsbook fixed odds — means prices are set by traders, not the house. This typically results in tighter spreads on liquid markets.

    Interested in sports prediction markets more broadly? CFTC-regulated platforms like Kalshi and Polymarket also offer sports event contracts. See the full sports markets guide →

    State Availability

    Available in 35+ states + DC (as of March 2026 per Novig official help center); blocked states vary by source but confirmed blocked: AL, AZ, CO, CT, ID, LA, MI, MT, NJ, NV, NY, TN, WA and others

    ~10 States Blocked

    States that prohibit or restrict sweepstakes-style gaming can restrict access to Novig. Public reporting has pointed to blocks in states including AL, CO, ID, LA, MI, MT, NV, and TN. As sweepstakes laws vary by state, availability can change.

    Check your eligibility before signing up. Use the State Checker tool →

    Modern financial technology office representing Novig's institutional approach
    Built for sharp bettors who value tight spreads over flashy UI

    Novig vs Kalshi: Side-by-Side

    FeatureNovigKalshi
    Regulatory StatusCFTC DCM pendingCFTC-regulated DCM + DCO
    Trading FeesNone (retail)≤1.75¢/contract (formula-based)
    Market TypesSports (primary focus)Economics, Politics, Sports, Weather, Finance
    State Availability35+ states + DC (sweepstakes laws apply)Most US states (litigation in 20+ federal and state actions pending as of April 2026. Mixed outcomes: NJ 3rd Circuit ruled for Kalshi (Apr 6); CFTC won Federal TRO in AZ (Apr 10, PR 9211-26); OH OCCC $5M fine notice (Apr 14); KY HB 904 enacted via veto override (Apr 14); WA AG civil suit pending (Mar 27). states)
    Revenue ModelData monetization + market makingPer-trade trading fee

    Fee varies by odds; free on politics markets.

    Best ForSports traders who prioritize zero feesTraders wanting full regulatory protection across all market types

    Who Should (and Shouldn't) Use Novig

    Consider Novig If...

    • You trade primarily sports and fee costs matter to you
    • You're in a state where Novig is available (not blocked by anti-sweepstakes laws)
    • You want exchange-style trading (order book, not fixed odds)
    • You understand the sweepstakes model distinction and are comfortable with it — read our get started guide if you're new to prediction markets

    Look Elsewhere If...

    • You want CFTC-regulated protections (segregated funds, CFTC oversight) — consider Kalshi instead
    • You want to trade economics, politics, weather, or financial markets — see all available platforms
    • You're in one of the ~13+ blocked states (AL, AZ, CO, CT, ID, LA, MI, MT, NV, TN, others)
    • Regulatory uncertainty is a dealbreaker for you

    Frequently Asked Questions

    5 common questions answered

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