Novig Attracts Acquisition Interest Amid Growing Prediction Market Competition
Sweepstakes-style prediction market platform Novig has drawn takeover interest from several companies in recent weeks, including Kalshi and Polymarket, according to industry sources. While it is unclear whether formal offers were made, Novig is not actively seeking a sale, and some parties have declined to comment on potential negotiations.
Established in 2021, Novig offers a peer-to-peer sports forecasting website where members bet on results interchangeably, utilizing Novig Coins for entertainment purposes or Novig Cash for exchangeable rewards. The application focuses on U.S. leagues, including the NBA, NFL, WNBA, and MLB.
Since its public launch in September 2024, Novig reported a fiftyfold increase in monthly trading and $2 billion in annualized volume. It has raised $33 million to date, including an $18 million Series A round in August led by Forerunner Ventures. Investors include NFL Hall of Famer Joe Montana.
The company's nationwide availability sets it apart from prediction market competitors Kalshi and Polymarket, which specialize in contracts on political and global events. Both rivals raised significant funding over the summer, with Polymarket valued at $1 billion and reportedly fielding offers of up to $9 billion.
Kalshi is also seeking additional backing, targeting a $5 billion valuation.
Continued regulation remains the thorn in the industry's side, most notably for sporting-related contracts. Various states attempted to shut down Kalshi's offerings, while Polymarket is poised to re-enter the US market after settling a federal investigation.
Novig exits New Jersey
Despite the new funding, Novig is facing increased regulatory challenges, most recently withdrawing from New Jersey. The exit followed Governor Phil Murphy's signing of Assembly Bill 5447, which bans most sweepstakes casinos involving digital currencies exchanged for prizes.
Days after celebrating its $18 million funding round, Novig informed New Jersey users it would restrict access beginning this past August. The company explained the change was required due to "new legislation."
Under its model, users acquire Novig Coins, which carry no cash value, but these purchases also come with Novig Cash, which can be used for sports wagers and redeemed for US dollars. Regulators determined that this dual-currency system qualified as a sweepstakes offering "something of value," making it illegal under the new law.
Similar legislative efforts have spread across the country. Connecticut and Montana passed comparable bans earlier this year, and while Louisiana's legislature approved a bill, it was vetoed by Gov. Jeff Landry. California and New York are also considering measures, both of which are awaiting signature by their respective Governors.
The Social and Promotional Games Association (SPGA), which represents sweepstakes operators, criticized New Jersey's legislation as anti-consumer. The group argued that such measures protect entrenched gaming interests while limiting entertainment options for adults.
California's pending bill has also drawn pushback from the SPGA, which said it disadvantages small businesses and non-gaming tribes.
