Novig review: how the sports prediction market works, where it is legal, and Novig vs Kalshi
Novig went from a sweepstakes app to a CFTC-regulated sports exchange in 2026. How peer-to-peer trading on Novig works, the 21+ rule and the three excluded states, what it costs, and how it compares with Kalshi and ProphetX.
Novig is a sports prediction market where you trade against other users, not against a sportsbook. Since August 2026 it has operated as a federally regulated exchange: its exchange company, Ludlow Exchange, LLC, received designation as a contract market from the Commodity Futures Trading Commission (CFTC) in June 2026.
That federal status lets Novig offer sports contracts in most US states, including many where online sports betting is illegal. It is also why Novig is in the middle of the fight between prediction markets and state gambling regulators.
As of 21 October 2026. State availability changes often; Novig's location check decides what you can trade.
Novig at a glance
| Novig | |
|---|---|
| What it is | A peer-to-peer sports exchange |
| Regulator | CFTC (designated contract market, June 2026) |
| Exchange entity | Ludlow Exchange, LLC, doing business as Novig |
| Live since | August 2026, as a regulated exchange |
| Markets | Sports only |
| Minimum age | 21 |
| Availability | 47 states plus Washington, DC; not Arizona, Michigan or Nevada |
| Founders | Jacob Fortinsky (chief executive) and Kelechi Ukah (chief technology officer), who started it as Harvard students |
How Novig works
Each Novig market is a contract on a sports outcome, such as a team winning a game. The contract pays out if the outcome happens and nothing if it does not, and its price is set by what users are willing to buy and sell at, not by a bookmaker.
The practical difference from a sportsbook:
| Sportsbook | Novig | |
|---|---|---|
| Who sets the price | The bookmaker, with a margin built in (the "vig") | Buyers and sellers in an order book |
| Who you trade against | The house | Other users |
| Can you exit early? | Only through the book's cash-out offer | Yes, by selling at the market price |
| Limits on winners | Books can limit sharp bettors | An exchange has no reason to |
The name is a pun on that margin: "no vig". Prices are easy to translate into probabilities: a contract trading at 60% (or 60¢ on a $1 payout) means the market sees about a 60% chance (how to read prediction market odds).
What Novig costs
Novig markets itself as commission-free trading. Your main cost on any exchange is the spread, the gap between the best price to buy and the best price to sell, which is narrow on big games and wider on niche markets. Check the fee line on your order before you confirm, and compare it with what other exchanges charge for the same game (Kalshi and Polymarket fees).
From sweepstakes app to regulated exchange
Novig began as a sweepstakes sports app, using a dual-currency model where one currency could be redeemed for prizes. Its push for state sports betting licences stalled, and from 2025 at least 11 states, including New York, California and New Jersey, banned dual-currency sweepstakes. The federal exchange route was the way out: one CFTC designation instead of fifty state licences.
Novig did not apply to be its own clearinghouse; ProphetX, by contrast, holds both an exchange and a clearing licence (ProphetX review).
Is Novig legal?
Novig operates under federal derivatives law, which is why it can serve users in states without legal sports betting. States dispute that:
- On 18 September 2026 Missouri's attorney general sent cease-and-desist letters to six prediction market operators. Novig and Crypto.com responded by suing Missouri in federal court.
- The underlying question, whether sports event contracts are federally regulated swaps or state-regulated bets, has split the federal appeals courts (is Kalshi legal?; is Kalshi gambling?).
Novig requires users to be 21, stricter than Kalshi's 18, which takes one argument away from critics (Kalshi age requirement).
Novig vs Kalshi vs ProphetX
| Novig | Kalshi | ProphetX | |
|---|---|---|---|
| Markets | Sports | Sports, politics, economics, weather, culture | Sports |
| Licences | Exchange (DCM) | Exchange and clearinghouse | Exchange and clearinghouse |
| Minimum age | 21 | 18 | 18 |
| States | 47 + DC | Most states; restricted in a few | 49 (not Nevada) |
| Best for | Sports traders who want an exchange | The widest range of markets | Sports traders, parlays |
If you only trade sports, Novig and ProphetX are built for you. For politics, economics or one account for everything, Kalshi or Polymarket US cover far more (best prediction market apps).
Novig: frequently asked questions
Is Novig legit?
Yes. Since 2026 it has operated through Ludlow Exchange, LLC, a CFTC-designated contract market, and runs as a peer-to-peer exchange.
Is Novig legal in my state?
It is live in 47 states and Washington, DC. Arizona, Michigan and Nevada are excluded, and state disputes can change the list.
How old do you have to be to use Novig?
21.
Does Novig charge fees?
Novig markets itself as commission-free; your main cost is the spread. Check the order screen for the fee on each trade.
Is Novig a sportsbook?
No. It is an exchange: you trade with other users, and prices come from the order book rather than a bookmaker.
