Novig Launches Nationwide Sports Prediction Market in 47 States

⏱ 3 min read

Novig, the Harvard-founded sports prediction market operator, went live in 47 states on August 4, 2026, becoming one of the first platforms to offer sports contracts exclusively under federal CFTC oversight — bypassing state gambling licenses entirely. The launch caps a sprint that took the company from startup to nationwide availability in under five years, backed by more than $105 million in funding and a reported $500 million valuation.

The timing is pointed. Just one week earlier, a federal judge blocked Minnesota's SF 3432 — the first state law in the country to ban prediction markets — ruling that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over these platforms, preempting state-level gambling statutes. Together, the court win and the Novig launch mark a significant shift in the legal architecture that governs US sports wagering.

---

The Launch

Novig was co-founded in 2021 by Jacob Fortinsky and Kelechi Ukah while both were studying at Harvard. The platform operates through Ludlow Exchange, LLC and runs as a peer-to-peer exchange — users trade against each other rather than against a house, a structure that removes the traditional bookmaker margin. By the time of its nationwide rollout, Novig had processed over $6 billion in cumulative trading volume.

Four days before launch, on July 30, 2026, Novig announced a multi-year exclusive partnership with the New York Mets — the first of its kind between a prediction market operator and an MLB franchise. The deal includes in-ballpark signage at Citi Field and branded in-game moments. Lew Sherr, President of the Mets, called innovation "a defining characteristic of our business." The partnership signals that major league sports properties are now willing to align publicly with prediction markets, not just traditional sportsbooks.

Novig is currently unavailable in Arizona, Michigan, and Nevada, where state-level conflicts with CFTC jurisdiction remain unresolved.

---

The CFTC Framework

The regulatory foundation for the launch came on June 16, 2026, when the Commodity Futures Trading Commission formally designated Ludlow Exchange as a Designated Contract Market (DCM) — a process the CFTC itself described as "one of the fastest designations of its kind in CFTC history." DCM status places Novig under the same federal regulatory umbrella as commodities and futures exchanges, rather than the patchwork of state gaming boards that license DraftKings and FanDuel.

The platform enforces a 21+ age requirement — an industry first for prediction markets — and offers player props, parlays, and correlated multi-leg contracts. Fortinsky described the company's trajectory as proof of "our ability to pivot swiftly from a regulatory perspective," having moved through licensed sportsbook and sweepstakes models before landing on the current CFTC-regulated structure.

---

The Minnesota Ruling

Novig's launch landed against a backdrop of sharpened legal clarity. On July 28, 2026, U.S. District Judge Katherine Menendez issued a preliminary injunction blocking Minnesota's SF 3432 from taking effect on August 1. The law — passed in May 2026 and the first of its kind nationally — would have made it a felony to operate a prediction market in the state.

The injunction was sought jointly by Kalshi, Polymarket, and the CFTC itself — an unusual alignment of regulator and private operators against a state. Judge Menendez found that the Commodity Exchange Act's preemption clause likely bars states from outlawing federally designated markets. CFTC Chairman Mike Selig called the ruling "a halt to aggressive state overreach of federally regulated markets." Minnesota AG Keith Ellison, who called prediction markets "gambling, plain and simple," has vowed to appeal.

Similar legal battles are active or anticipated in Arizona, Connecticut, Illinois, New Jersey, Massachusetts, and Wisconsin.

---

Market Landscape

Novig enters a crowded but fast-consolidating field. Its direct competitors now include Kalshi, Polymarket, ProphetX, Underdog, and prediction market products recently launched by DraftKings, FanDuel, Fanatics, and Robinhood. The competitive picture shifted further in recent weeks when IG Group acquired Underdog for $1.3 billion, and Polymarket separately acquired QCX LLC for approximately $112 million to reestablish its US presence.

Platform	Regulator	Model	US States Available	Notable Backer / Deal
Novig (Ludlow Exchange)	CFTC (DCM)	Peer-to-peer exchange	47	Pantera Capital ($75M Series B)
Kalshi	CFTC (DCM)	Event contracts	Most states	Co-plaintiff in MN injunction
Polymarket	CFTC (via QCX acquisition)	Event contracts	Reentering US	$112M QCX acquisition
Underdog	State gaming / CFTC (pending)	Fantasy + prediction	Multiple	Acquired by IG Group ($1.3B)
DraftKings / FanDuel	State gaming boards	Sportsbook + prediction	30+ each	Traditional licensed operators

The week's events collectively demonstrate that the prediction market sector has moved from legal novelty to mainstream competitive threat. Whether states can mount effective resistance now appears increasingly doubtful following the Minnesota ruling.

---

Sources

Primary sources cited first; all URLs verified at time of publication.

States cannot ban things they don't have jurisdiction over.

— Neal Kumar, Chief Legal Officer, Polymarket · On the Minnesota injunction, July 2026