Novig has reported more than $125 million in notional trading volume during its first week as a nationwide sports prediction market platform, marking a strong early performance following its transition away from traditional sportsbook and sweepstakes operations.

The company launched its federally regulated prediction market on August 4 after receiving approval from the Commodity Futures Trading Commission (CFTC) to operate as a designated contract market. Novig’s platform allows users to trade contracts linked to sports outcomes, with the company positioning itself around sports-focused event markets rather than broader financial products.

According to figures shared by the company, Novig’s opening-week trading activity exceeded the first-week sports contract volume recorded by Kalshi, Polymarket U.S., Underdog and DraftKings’ DKeX. The company reported that its busiest day generated $26.3 million in trading volume.

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

Parlays accounted for approximately one-third of Novig’s first-week volume, while baseball markets generated the highest level of activity, according to people familiar with the platform’s operations.

Notional volume reflects the total value of contracts traded rather than the amount of money held by the exchange. The figure provides an indication of market activity as prediction platforms continue gaining attention in the United States.

Novig Focuses on Sports Contracts as Prediction Markets Expand

Novig enters a rapidly developing prediction market sector where companies are expanding beyond traditional yes-or-no event contracts.

Platforms in the category have introduced additional products, including perpetual futures contracts and risk-based hedging tools. Industry observers have suggested these offerings are designed to appeal to financial market participants and strengthen the perception of prediction markets as financial instruments.

Novig has chosen to maintain its concentration on sports-related contracts.

“Our focus is on markets tied directly to sports and competition,” Fortinsky said, as reported by Briefs Finance.

The company’s current direction follows several changes to its business model. Novig originally operated as a sports betting exchange under a Colorado sports betting licence before moving into a sweepstakes-based social sportsbook product in 2024. After receiving CFTC approval in June, the company shifted its operations toward the federally regulated prediction market model.

The company has also introduced a 21-and-over age requirement for users. Fortinsky said the decision was made after considering concerns around younger consumers participating in prediction markets.

“We’ve listened to the public… the 18- to 20-year-old demographic in some ways is uniquely susceptible to misbehavior in certain ways, and so we currently are 21-plus in our current product offering,” Fortinsky previously told CNBC. “We encourage the rest of the industry to follow suit.”

Novig has also introduced responsible trading measures, including identity verification, deposit and loss limits, cooling-off periods and self-exclusion options.

Legal Disputes Continue Over Sports Event Contracts

Despite its early trading results, Novig faces regulatory challenges as several states argue that sports prediction contracts fall under gambling laws.

The company has filed lawsuits against New York, Massachusetts, Washington, New Mexico and Wisconsin, claiming that state gambling regulations should not apply to federally regulated event contracts overseen by the CFTC.

The CFTC has also taken legal action involving states that have challenged prediction market operators. The agency maintains authority over designated contract markets, while state regulators have argued that certain sports contracts resemble wagering activities.

Novig’s first attempt to prevent enforcement action in New York was unsuccessful. A federal judge in the Southern District of New York denied the company’s request for a temporary restraining order that would have stopped the state from applying its gambling rules against Novig.

Gaming attorney Daniel Wallach commented on August 9 that Novig’s chances in cases involving Massachusetts, New York and Washington “are dim” following recent court decisions that supported state positions.

The company continues to argue that its federally regulated status separates its products from traditional sports betting.

Prediction Market Competition Grows

Novig’s launch comes during a period of rapid growth across prediction market platforms.

Since May, Kalshi, Polymarket and Polymarket U.S. have recorded some of the highest monthly notional trading volumes in the sector, according to market data from Dune.

Other operators have also expanded their presence, with prediction markets increasingly covering areas beyond simple outcome-based contracts. The broader industry continues developing products aimed at users interested in financial-style trading opportunities.

Novig’s strategy remains centred on sports as major competitions approach, including upcoming NBA and Premier League seasons.

The company believes its sports focus can differentiate it within the prediction market sector, while its regulatory approval gives it a foundation for nationwide operations.