Affiliate disclosure: Bellwether may earn a commission when readers open an account through links on this page. Compensation does not influence our editorial verdict. See our full affiliate disclosure. Last updated: May 30, 2026.
TL;DR
Novig is a peer-to-peer (P2P) sports prediction exchange that strips out the traditional sportsbook vig (typically 4–6%) by matching users against each other rather than against a house. As of May 2026, Novig operates under a sweepstakes model with a dual-currency system (Novig Coins for play, Novig Cash for redemption), reports more than $4 billion in annualized trading volume across more than 100,000 active traders, and has filed a Designated Contract Market (DCM) application with the CFTC under the entity name Ludlow Exchange LLC (filed January 21, 2026). The company closed a $75 million Series B in February 2026, led by Pantera Capital with Multicoin Capital participating.
Top three things to know: (1) The matching model is the structural innovation — you pay no vig, only a small post-settlement take rate on net winnings. (2) Sweepstakes legality varies by state; Novig is currently live in 35+ jurisdictions including CA, TX, and FL, but blocked in WA, ID, MI, NV among others. (3) If the CFTC DCM application is approved, Novig converts from sweepstakes to a federally regulated derivatives exchange — the same regulatory tier as Kalshi.
Who it’s for: EV-aware sports traders, arbitrageurs, and former Pinnacle users priced out of US markets. Who it’s not for: recreational parlay players who prefer DraftKings-style promotions, and residents of excluded states. Bottom line: the cleanest no-vig sports prediction venue available to US residents today, with meaningful regulatory upside if the DCM application clears.
Open an account
Open Novig → — claim 1000 Novig Coins + 5 Novig Cash on signup. No promo code required; the welcome bonus auto-applies. Eligibility: 18+ in 35+ states. See our full Novig promo breakdown for the math on the welcome offer.
What is Novig?
Novig was founded in 2021 by Jacob Fortinsky and Kelechi Ukah, who met as undergraduates at Harvard and built the company out of Y Combinator’s Winter 2022 batch. The thesis was straightforward: traditional US sportsbooks operate as bookmakers, setting both sides of a market and embedding a 4–6% margin (the “vig” or “juice”) into every line. Sharp bettors who beat that vig are routinely limited or banned. A peer-to-peer exchange — modeled on Betfair in the UK and Pinnacle’s reduced-juice approach offshore — solves both problems at once.
The company operates as a sweepstakes platform across most US states, meaning users acquire Novig Coins (the play currency) through purchases or promotions, and earn Novig Cash (the redeemable currency) through promotional sweepstakes mechanics. This is the same structural model used by Chumba, Stake.us, and other sweepstakes operators, and it sits outside the patchwork of state sports-betting regulation that governs DraftKings or FanDuel.
What makes the Novig story interesting from a Bellwether perspective is what comes next. On January 21, 2026, the company filed a DCM application with the Commodity Futures Trading Commission under the entity Ludlow Exchange LLC. If approved, Novig becomes the third federally regulated US prediction-market exchange after Kalshi (DCM approved 2020) and Polymarket (operating in the US via the QCEX DCM acquisition). The $75M Series B announced in February 2026, led by Pantera Capital with Multicoin Capital participating, was explicitly framed by the investor syndicate as funding the regulatory transition and product expansion beyond sports.
How Novig works
The peer-to-peer matching model
In a traditional sportsbook, you bet against the house. The house posts -110 on both sides of a coin-flip market, collects a 4.5% margin in expectation, and pays out the winners. Novig replaces the house with a matching engine. When you want to back the Kansas City Chiefs at -3, the platform searches for a counterparty willing to lay the Chiefs at -3 (or a price near it). If a match exists, the trade fills at the agreed price with no embedded vig.
The practical implication: lines on Novig tend to be tighter than retail sportsbooks. On a typical NFL spread market, you’ll often see effective pricing equivalent to -103/-103 rather than the -110/-110 you’d see at DraftKings — a roughly 3 percentage-point swing on every contract, compounded across hundreds of trades per season.
Account creation and KYC
Signup requires a US mobile number, email, full legal name, date of birth, and the last four digits of your Social Security number for identity verification. KYC typically clears in under five minutes for most users; edge cases involving thin credit files may require a photo of a government ID. The platform uses standard third-party verification (Jumio for documents, where required) and geolocation enforcement at the state level.
Deposits and withdrawals
Novig accepts ACH bank transfers, debit card deposits, and Apple Pay. There are no deposit fees as of May 2026. Withdrawals (technically “redemptions” of Novig Cash for USD) carry a $20 minimum and process via ACH in 1–3 business days. The platform also supports instant debit-card withdrawals for verified users at a small processing fee. There is no withdrawal cap on verified accounts, though redemptions above $10,000 may trigger enhanced compliance review.
Markets covered
Novig’s market depth concentrates in the major US sports leagues: NFL, NBA, MLB, UFC, and English Premier League soccer. The exchange supports moneylines, spreads, totals (over/under), player props, futures, and same-game parlays. Custom-odds creation is one of Novig’s distinguishing features — you can post a limit order at a price not currently quoted by the market, and if a counterparty crosses your level, you get filled at your number.
Liquidity by sport (sampled across the week of May 25–29, 2026):
| Market | Typical bid/ask depth on major lines | Custom-odds order-book activity |
|---|---|---|
| NFL spreads (regular season) | $50,000+ per side at -103/-103 | Deep |
| NBA moneylines (playoffs) | $25,000–$75,000 per side | Moderate |
| MLB totals (in-game) | $5,000–$20,000 per side | Light |
| UFC main events | $10,000–$30,000 per side | Moderate |
| EPL match winners | $3,000–$15,000 per side | Light to moderate |
| Player props (NFL, NBA) | $500–$5,000 per side | Variable |
Compared to a retail sportsbook, the depth on NFL and NBA majors is competitive. Player-prop liquidity is the weakest segment — large prop orders may take longer to fill, or fill at progressively worse prices. Novig has not yet expanded into the politics, economics, or culture markets that distinguish Kalshi and Polymarket; the platform remains sports-focused as of May 2026, though the Series B announcement explicitly signals expansion plans.
Fees, costs, and friction
Novig’s headline pitch is “no vig” — and on the trade itself, that’s accurate. There is no markup baked into the line. The company monetizes through a post-settlement take rate of 1–2% on net winnings, applied only to winning trades. If you lose, you pay nothing beyond your stake.
For a typical sharp bettor breaking even at retail (where the 4.5% vig is the structural drag), the math improves materially:
| Volume scenario | Retail sportsbook (4.5% vig) | Novig (1.5% take on winnings) | Effective cost reduction |
|---|---|---|---|
| $10,000 handle, 50% win rate | ~$450 paid to house | ~$75 paid to Novig | ~83% |
| $100,000 handle, 52% win rate | ~$4,500 paid to house | ~$780 paid to Novig | ~83% |
There are no deposit fees, no inactivity fees, and no withdrawal fees on the standard ACH rail. Instant debit-card withdrawals carry a fee in the 1–2% range, similar to peer fintech products. The main friction points are (a) the $20 minimum redemption threshold, which delays small cash-outs, and (b) sweepstakes-mode UX requirements — winnings show up in Novig Cash, not USD, and require a redemption step.
Welcome bonus
New users receive 1000 Novig Coins + 5 Novig Cash on signup. No promo code is required; the bonus auto-applies once your account clears KYC and your first deposit settles. Novig Coins are the play currency (used for sweepstakes-mode trading); Novig Cash is redeemable for USD at a 1:1 ratio above the $20 minimum.
For a structural breakdown of the bonus economics — what the 5 Novig Cash is realistically worth in expected value, how it stacks against Kalshi’s $10 trade credit and Polymarket’s $50 deposit-match, and the activity requirements — read our full Novig promo code analysis.
Eligibility: state-by-state and age
Novig requires users to be 18 years or older and physically located in an eligible state at the time of any trade. Geolocation is enforced via the mobile app’s GPS and additional IP/Wi-Fi triangulation.
Live in (35+ states, as of May 2026): AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, KY, ME, MD, MA, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WV, WI, WY, plus DC.
Not available in: WA, ID, MI, NV, LA, HI. Each of these states has either an explicit sweepstakes restriction (WA, ID), a regulated sports-betting framework that effectively crowds out sweepstakes (MI, NV, LA), or general gambling-law ambiguity that Novig has elected not to navigate (HI).
Note that the eligibility map shifts as state regulators clarify positions on sweepstakes-model platforms. If Novig’s CFTC DCM application is approved, the state map will likely change because federally regulated derivatives exchanges preempt most state-level gambling restrictions — the same reason Kalshi operates in all 50 states. Check our prediction markets legal status guide for the underlying federal/state framework.
Novig vs Kalshi vs Polymarket
The three platforms reflect three distinct regulatory and product approaches:
| Dimension | Novig | Kalshi | Polymarket |
|---|---|---|---|
| Regulatory status | Sweepstakes; CFTC DCM pending (filed Jan 21, 2026) | CFTC DCM (approved 2020) | CFTC DCM via QCEX acquisition |
| States available | 35+ (sweepstakes patchwork) | 50 states | 50 states |
| Primary product focus | Sports (NFL, NBA, MLB, UFC, EPL) | Politics, economics, sports (expanded 2024–25) | Politics, crypto, culture, sports |
| Trading model | P2P exchange (matched orders) | P2P exchange + market makers | P2P order book, on-chain settlement |
| Settlement | USD, fiat rails | USD, fiat rails | USDC on Polygon |
| Fee structure | 1–2% take on net winnings | 0–4% trading fee; varies by contract | ~2% fee on winnings |
| Payout speed | 1–3 business days ACH; instant card (fee) | 1–3 business days ACH | Instant on-chain; off-ramp varies |
| Welcome offer | 1000 Coins + 5 Novig Cash | $10 trade credit | $50 deposit match (varies) |
| Annualized volume | $4B+ (Q1 2026) | ~$5B (Q1 2026) | ~$10B (Q1 2026) |
For sports specifically, Novig is the deepest and tightest US-accessible market. Kalshi added sports contracts in 2024–25 but liquidity remains thinner than Novig on most NFL and NBA lines. Polymarket carries sports but the on-chain settlement and USDC denomination add friction for users without a crypto wallet. Read our full Kalshi review, Polymarket review, best sports prediction markets overview, and best sports betting alternatives ranking for deeper side-by-side analysis.
Tax treatment
Sweepstakes winnings, including Novig Cash redeemed to USD, are taxed as ordinary income. They are not eligible for the 60/40 long-term/short-term split available on Section 1256 contracts (which applies to certain regulated futures, but not sweepstakes prizes). Novig issues Form 1099-MISC for redemptions exceeding $600 in a calendar year, in line with standard IRS reporting requirements for prizes and awards.
If Novig’s CFTC DCM application is approved, the tax treatment of trades executed on the new exchange may shift. Kalshi, for example, treats its event contracts under standard capital-gains rules rather than Section 1256, though this remains an area of evolving IRS guidance. Bellwether recommends keeping a personal trade log — date, market, side, stake, settlement, net P&L — independent of the platform’s exports. Sweepstakes operators have historically had inconsistent tax-reporting quality, and the IRS holds the taxpayer responsible for accurate filings regardless of what the operator does or doesn’t issue.
This is not tax advice. Consult a CPA familiar with gambling and derivatives reporting before filing.
Pros and cons
- Pro: True no-vig pricing on matched trades; structural cost advantage over retail sportsbooks of roughly 80%.
- Pro: Custom-odds creation lets you post limit orders at your own price.
- Pro: Deep NFL and NBA liquidity competitive with regulated US sportsbooks.
- Pro: Pending CFTC DCM application offers meaningful regulatory upside; $75M Series B funded by Pantera Capital and Multicoin signals institutional conviction.
- Pro: No sharp-bettor limiting — the P2P model has no bookmaker to throttle winners.
- Con: Sweepstakes mode adds UX friction (Coins vs Cash, redemption thresholds).
- Con: Not available in WA, ID, MI, NV, LA, HI.
- Con: Player-prop liquidity thinner than spreads/totals; non-sports markets not offered.
- Con: Tax treatment as ordinary income is less favorable than Section 1256 (if that ever applies).
Bottom line
Sign up today if: you reside in an eligible state, you place more than ~$1,000 in monthly handle across sports markets, and the structural cost reduction matters to your bottom line. The fee math alone justifies opening an account; the welcome bonus is incremental upside.
Wait if: you live in a state where sweepstakes status is contested (the regulatory landscape is moving in mid-2026 and may shift before the CFTC application resolves), or you primarily trade non-sports markets — Kalshi and Polymarket cover those better. What would change our verdict: CFTC DCM approval converts Novig from a sweepstakes operator with regulatory tail risk into the third federally regulated US prediction-market exchange. That outcome would push Novig from “highly recommended for sports” to “the default US sports prediction venue, period.”
Frequently asked questions
Is Novig legal in the United States?
Novig operates as a sweepstakes platform across 35+ US states as of May 2026, including California, Texas, and Florida. Sweepstakes laws vary by state, which is why Novig is not available in Washington, Idaho, Michigan, Nevada, Louisiana, or Hawaii. The company also filed a CFTC Designated Contract Market application on January 21, 2026, under the entity Ludlow Exchange LLC. If approved, Novig would operate as a federally regulated derivatives exchange, similar to Kalshi.
How does Novig make money if there’s no vig?
Novig charges a post-settlement take rate of approximately 1–2% on net winnings, applied only to winning trades. There is no markup embedded in the line itself — your fill price reflects the actual peer-to-peer match. For comparison, a traditional sportsbook collects roughly 4.5% per matched bet regardless of outcome. On a $10,000 handle with a 50% win rate, the expected cost on Novig is roughly $75 versus ~$450 at a retail book.
What’s the difference between Novig Coins and Novig Cash?
Novig Coins are the play currency used for sweepstakes-mode trading; they cannot be redeemed for real money. Novig Cash is the redeemable currency, exchangeable for USD at a 1:1 ratio above the $20 minimum redemption threshold. You earn Novig Cash through promotional sweepstakes mechanics — including the 5 Novig Cash bundled with the welcome bonus — and through winning trades placed with the redeemable currency.
Is Novig available in California, Texas, and Florida?
Yes. As of May 2026, Novig is available in California, Texas, and Florida, along with 32+ other US states. Eligibility is enforced via mobile geolocation at the time of each trade. The full ineligible list (WA, ID, MI, NV, LA, HI) reflects either explicit state-level sweepstakes restrictions or regulatory frameworks that crowd out the sweepstakes model.
What happens to Novig if the CFTC DCM application is approved?
If the CFTC approves the application filed January 21, 2026 under the Ludlow Exchange LLC entity, Novig would transition from a sweepstakes operator to a federally regulated derivatives exchange. The most likely changes: nationwide availability (federal preemption supersedes state sweepstakes restrictions, as it does for Kalshi), elimination of the Coins/Cash dual-currency system in favor of direct USD trading, and potential reclassification of tax treatment. Approval timeline is uncertain; CFTC DCM applications historically take 6–24 months.
Can sharp bettors get limited or banned on Novig?
No. Because Novig operates as a peer-to-peer exchange rather than a bookmaker, there is no house position to protect. Sharp traders are matched against other traders willing to take the opposite side, and the platform earns its take rate regardless of which side wins. This is structurally different from regulated US sportsbooks, where winning customers are routinely limited or restricted.
How does Novig compare to Pinnacle?
Pinnacle has long been the reference point for sharp bettors globally — low margins, no limiting, broad markets — but it does not accept US-resident customers. Novig is the closest US-accessible analog in terms of pricing structure and sharp tolerance, though Pinnacle’s market breadth (every minor European league, table tennis, esports) remains deeper. For US sharps who previously routed action offshore, Novig is the regulated-pathway alternative as of May 2026.
What’s the minimum withdrawal on Novig?
The minimum redemption is $20 of Novig Cash, processed via ACH in 1–3 business days. Instant debit-card withdrawals are available for verified users at a small processing fee. There is no maximum withdrawal cap on verified accounts, though redemptions exceeding $10,000 may trigger enhanced compliance review consistent with anti-money-laundering requirements.
Editorial disclosures
Bellwether is an editorial publication covering US prediction markets. We may earn affiliate commissions when readers open accounts through links on this page; compensation does not influence our editorial verdict, ratings, or coverage decisions. All data points in this review carry an explicit timestamp. Novig has not reviewed or approved this content. For our complete editorial and affiliate policies, see Bellwether’s disclosure framework. Author: Marcus Bell (sports desk). Last reviewed: May 30, 2026.