Novig, the peer-to-peer sports prediction market, disclosed a $75 million Series B on Feb. 18, 2026, led by Pantera Capital with participation from Multicoin Capital. The round values the New York-based startup at roughly $500 million and arrives as Novig confirms more than $4 billion in annualized trading volume across a user base it puts above 100,000 active traders.
The financing, first reported by Fortune, marks the largest single investment in a US sweepstakes-model sports prediction venue to date and lands while Novig’s pending application to operate as a CFTC-designated contract market sits under federal review.
What the round funds
Novig’s leadership told Fortune the capital will go toward product engineering, expanded sports coverage, and the legal and compliance buildout needed to transition from a sweepstakes operator into a fully regulated event-contract exchange. The company has not disclosed how much of the round is earmarked for the CFTC application track specifically.
The Series B follows a $9 million seed round Novig closed in 2022 and a Series A in 2024. Pantera Capital, which has backed Polymarket and other prediction-market infrastructure plays, takes a board seat as part of the deal. Multicoin Capital’s involvement extends the firm’s exposure to the event-contract category after its earlier bets on crypto-native prediction protocols.
The $4 billion volume claim, in context
Novig’s $4 billion annualized figure, disclosed Feb. 18, 2026, is a notional volume metric, meaning it reflects the total value of contracts traded on the platform rather than revenue or take-rate income. Annualized figures extrapolate recent activity across a full year, so the headline number should be read as a run-rate snapshot, not booked volume.
For perspective, Polymarket’s 2024 election-cycle volume peaked above $3 billion in a single month, and Kalshi reported event-contract volume in the multi-billions across 2025. Novig’s $4 billion run-rate puts it in the conversation with the two larger US-facing platforms, though direct comparisons are complicated by the sweepstakes model’s distinct mechanics and prize-redemption structure.
The sweepstakes-to-DCM playbook
Novig currently operates under a dual-currency sweepstakes structure familiar to US users of platforms like Chumba Casino and Fliff. Players purchase or are awarded a virtual currency that can be used to take positions on sporting outcomes, with a secondary redeemable currency unlocked through specific paths. The model sidesteps state-by-state sports-betting licensing because no direct cash wagering occurs.
The DCM application Novig filed earlier this year, under the entity name Ludlow Exchange LLC, would convert that structure into something materially different: federally regulated event contracts traded peer-to-peer on a registered exchange, similar to how Kalshi operates today.
“A $4 billion run-rate at sub-100,000 active traders implies real engagement, not just promotional spend. The question is whether that engagement survives the transition from sweepstakes economics to a regulated take-rate model, where every contract has to pencil out on margin alone.”
That analyst commentary captures the central uncertainty around Novig’s trajectory: sweepstakes platforms typically generate revenue through coin-package sales and redemption frictions, while a CFTC-regulated exchange would earn primarily through trading fees. The economics, user expectations, and competitive set all shift.
Competitive read
The raise repositions Novig against two distinct competitors. Against Kalshi, the comparison is structural: both would operate as federally-regulated event-contract exchanges if Novig’s DCM application succeeds, and both target sports as a growth vertical. Kalshi launched sports event contracts in 2025 after winning a series of legal challenges from state regulators.
Against Polymarket, the comparison is more about market positioning. Polymarket, which obtained US market access through its acquisition of QCEX in mid-2025, leans toward macro, political, and crypto-native event contracts. Novig has built its product around the US sports calendar and a sportsbook-adjacent user experience.
What remains unclear
Novig has not disclosed a target approval timeline for the DCM application, the specifics of how user balances or sweepstakes accounts would migrate post-approval, or the state-level availability map it expects under federal preemption. CFTC review periods for DCM applications have historically ranged from six to eighteen months, and the agency’s current posture on sports event contracts continues to evolve.
For now, Novig remains a sweepstakes operator with regulatory ambition and an enlarged war chest. Read our full Novig review for current product mechanics, state availability, and how the platform compares to Kalshi and Polymarket.
What this means for Bellwether readers
Novig’s $75M raise signals that sophisticated capital is betting on a US sweepstakes-to-DCM pathway as a viable third lane alongside Kalshi and Polymarket. Traders should expect Novig’s roadmap and product mechanics to evolve rapidly as the company positions for regulatory transition.