Novig Secures $75M Series B as Its Sweepstakes Prediction Market Heads to Washington for Federal Sign-Off

Is Novig ready to ditch the sweepstakes casino model? Based on its recent funding round, this privately-held company raised $75 million in a Series B funding round led by Pantera Capital, pushing its total capital raised to over $105 million. In its February 18th press release, the company shared that this fresh capital will support its “trader-first sports prediction market.

The company is currently positioning itself as a commission-free, peer-to-peer exchange built for sports traders, a stark contrast to traditional sportsbooks that operate against the house. 

Novig’s largest fundraising comes at a critical moment for the sweepstakes casino industry—states are drafting bills to ban sites that operate on the dual-currency model, and many operators are either exiting or revamping their business models.

An Incoming Pivot from Novig in the Works?

As of this writing, Novig operates as a sweepstakes social casino. The company shifted to the dual-currency sweeps model in late 2024 after exiting Colorado. Novig supports virtual currencies for its peer-to-peer prediction contests, with no-purchase requirement or house-banked betting. In short, it allows users to join and play with free “Novig Coins” or enjoy “Novig Cash” earned via bonuses (redeemable for cash prizes). At its core, Novig’s operations resemble those of sweepstakes casinos, with a model that skirts state gambling laws.

Now, things are about to change in Novig after a successful funding round. The fresh funding worth $75 million was led by Panterra Capital, with the participation of Edge Equity, Makers Fund, Multicoin Capital and existing investors.

With fresh funding, the company has increased its capital to $105 million and has set its eyes on a new project: becoming a  licensed Designated Contract Market (DCM).

Novig has already submitted the paperwork to the Commodity Futures Trading Commission (CFTC) and is currently transitioning to become a federally regulated exchange accessible in all 50 states.

On the surface, Novig intends to phase out its sweepstakes model branding over the next few months (subject to regulatory approval), and migrate its users into federally-approved and regulated exchange model.

What It Means to Players and the Novig Team

In the same press release, Novig explained that the team aims to “democratize and financialize sports markets”, and they’re proud to share that their users “are 10x more likely to win than on traditional sportsbooks”. 

According to Jacob Fortinsky, Co-Founder and CEO of Novig, the company partnered with the best crypto venture firms to accelerate its plans to make the platform the “most efficient and liquid sports prediction market in the world”. Pantera Capital’s Paul Veradittakit agrees, adding that “Novig is proving that prediction markets can fundamentally reshape sports betting by removing the exploitative middleman”.

Ultimately, Novig’s pivot reflects a regulatory upgrade and company de-risking. By potentially moving away from the sweepstakes casino model into a CFTC-regulated prediction market, Novig paves a clearer and federally accepted model at a time when states are tightening their rules on sweeps models.

REFERENCES

• Novig Press Release