Novig records more than $125 million in trading volume in its first week

Prediction markets platform Novig, which hosts sporting event contracts and launched on August 4, has reported more than $125 million in nominal volume in its first week, the platform shared with CNBC.

The platform’s first-week volume surpassed Kalshi’s and Polymarket US’s opening-week volume for sports contracts, as well as those of Underdog and DraftKings’ proprietary prediction markets exchange, DKeX, according to data calculated by Novig.

Parlays covered a third of Novig’s total trading volume, with baseball markets dominating over others, people familiar with the platform’s operations said.

“Our highest volume day since its nationwide launch… was $26.3 million in trading volume,” said co-founder and CEO Jacob Fortinsky.

Meanwhile, since May, Kalshi, Polymarket and Polymarket US have dominated monthly nominal volume compared to other prediction markets, according to data published in Dune.

Prediction market platforms have launched products outside of binary event contracts. Binary event contracts have two possible outcomes (essentially a “yes” or “no” for a specific question) and pay a fixed amount if the event occurs.

The platforms’ latest offerings include perpetual futures contracts and hedges for certain risks, which experts say are ways for platforms to appeal to Wall Street and identify them as serious financial instruments.

Novig’s interest remains in sports, especially as the upcoming NBA and Premier League seasons approach. “Our focus is on markets directly linked to sports and competition,” Fortinsky said.

Sports event contracts have not been able to escape regulatory challenges, with several states arguing that prediction market platforms are operating as illegal betting sites. The Commodity Futures Trading Commission, the federal agency authorized to regulate event contract exchanges, filed lawsuits against several states in response.

Novig has also joined the legal dispute over the regulation. The platform has already sued New York, Massachusetts, Washington, New Mexico and Wisconsin, claiming that the states cannot apply their gambling laws to the platform’s sporting event contracts.

Last week, a judge in the Southern District of New York denied the platform’s request for a temporary restraining order against the Empire State, which would have prevented the state from enforcing its gaming rules in Novig.

On August 9, gaming attorney Daniel Wallach wrote on the social media platform

The CFTC granted approval for Novig’s designated contract markets application in June, and the company has been moving its entire business into the prediction markets category. It previously operated in Colorado under a state sports betting license and then transitioned to a sweepstakes-based product. Novig only allows users over 21 years of age.

“We’ve heard from the public… the 18 to 20-year-old demographic is somehow uniquely susceptible to bad behavior in certain ways, so we’re currently over 21 in our current product offering,” Fortinsky previously told CNBC. “We encourage the rest of the industry to do the same.”

Disclosure: CNBC and Kalshi have a business relationship that includes customer acquisition and a minority investment.