Silicon Valley-backed start-up Novig has launched a sports prediction market in 42 states and Washington DC using a sweepstakes model.
Novig provides users with two distinct modes of play: Novig Coins, which can be used for fun or to test new trading strategies, and Novig Cash, which allows users to redeem real cash prizes.
Novig is available to users 21 and older across the United States, except in the following states: Alabama, Colorado, Idaho, Louisiana, Michigan, Montana, Nevada, and Tennessee.
“Players are fed up with having to play on apps where the house always wins and the odds are stacked against them,” said Novig CEO and co-founder Jacob Fortinsky (pictured).
“On Novig, 43% of users are profitable — compared to an industry average of 3% — and we’re the first app to offer a commission-free sports prediction market.
“We were overwhelmed by how well we did in Colorado, and we’re beyond excited to now be able to offer our revolutionary app to sports fans nationwide,” he added.
Company background
Last year, Novig completed a seed funding round of $6.4m from prominent investors including Lux Capital, Y Combinator, Paul Graham, Joe Montana, CapitalX, Soma Capital, Palm Drive Capital, Archon Capital, TRAC, Rebel Fund, Maiora Ventures, True Culture Fund, and many others.
Last October, the company confirmed it was in receipt of an Internet Sports Betting Operator licence from the Colorado Division of Gaming.
In January, Novig then launched its commission-free sports betting app in Colorado, however, three months after it debuted in Colorado, the company announced it was shutting it down to work on “huge game-changing product updates.”
Novig initially wanted to offer a betting exchange in Colorado where players set their own odds.
State regulators, however, have not approved the exchange system, forcing Novig to operate as a traditional sportsbook until the firm exited the market.
According to the company’s website, the newly launched product is currently also unavailable in Colorado.
Novig’s platform currently offers moneyline, spread, total markets, and player props in NFL, NBA, WNBA, NCAAF, NCAAB, and MLB.
In the coming months, it plans to expand its offering to include parlays, SGPs, futures, more sports, and a web-based trading interface.
Sweepstakes under the microscope
Despite the excitement surrounding its expansion, Novig and similar sweepstakes operators are currently facing increased scrutiny.
Last month, the American Gaming Association (AGA) issued a memo urging state regulators and attorney generals to investigate sweepstakes-based gaming offerings.
The AGA expressed concerns about the lack of regulatory oversight in the sweepstakes model, which it argues could pose risks to consumers and challenge the economic integrity of the legal gaming market.