Exchange-style sports trading with no retail fees — but there's a critical distinction: Novig currently operates as a sweepstakes model, not a CFTC-regulated exchange. Here's what that means for traders.
Regulation
Sweepstakes
Markets
Sports
Fees
$0
CFTC
Pending
Novig offers a zero-fee sports trading experience, but operates under a sweepstakes model — not CFTC regulation. A DCM application was filed January 2026 via Ludlow Exchange LLC. Until approved, Novig lacks the federal commodity exchange protections that platforms like Kalshi and Polymarket provide. Use with that distinction clearly understood.
Zero retail trading fees
No trading fees for retail users (sweepstakes model); makes money via data monetization and market making
Exchange-style order book
Tighter spreads vs fixed-odds sportsbooks
Well-funded
$75M Series B (Feb 2026, Pantera Capital led); $105M+ total raised
CFTC path underway
DCM application filed Jan 2026; platform has a regulatory roadmap
Sports-first UX
Built specifically for sports traders, not a generalist platform
Not CFTC-regulated
Sweepstakes model lacks federal commodity exchange protections
State restrictions
Blocked in ~10 states due to anti-sweepstakes laws
Sports-only focus
No economics, politics, weather, or finance markets
Regulatory uncertainty
CFTC application outcome is not guaranteed; sweepstakes laws can change
No CFTC customer protections
Unlike DCM platforms, not subject to CFTC segregated funds rules
See how Novig stacks up
Currently sweepstakes model (Ludlow Exchange LLC DCM application pending CFTC, filed Jan 21, 2026); plans to transition to full CFTC-regulated prediction market
This is a fundamental difference from Kalshi, Polymarket, and ForecastEx — which are CFTC-designated contract markets. Until Ludlow Exchange LLC's DCM application is approved, Novig operates under sweepstakes law, not federal commodity regulation.
Novig is a US-based sports trading platform that uses an exchange-style order book — similar to how CFTC-regulated prediction markets work — but currently operates under a sweepstakes legal framework. This allows it to offer trading in most US states without CFTC authorization.
The platform's core differentiator is its fee structure: Novig charges no retail trading fees. Rather than collecting per-trade commissions, the company monetizes through data sales and market making. To understand how exchange-style trading differs from sportsbooks, read our guide on how prediction markets work. You can also compare all platforms to see where Novig fits in the landscape.
On January 21, 2026, Ludlow Exchange LLC — the entity behind Novig's planned regulated exchange — filed a Designated Contract Market (DCM) application with the CFTC. That application is currently under review. Track all pending applications on our full regulatory tracker, or see how the CFTC has handled prediction market platforms in our CFTC enforcement overview.
Novig does not currently hold a CFTC DCM or DCO designation. It operates under sweepstakes law.
Ludlow Exchange LLC submitted its DCM application to the CFTC on January 21, 2026. Review timelines vary.
Novig plans to transition to a fully CFTC-regulated prediction market upon DCM approval.
Novig's zero-fee model is its headline feature. Unlike Kalshi (which charges a formula-based entry fee — highest at 50/50 odds, max 1.75¢, near-zero for longshots) or traditional sportsbooks (which embed vigorish in odds), Novig retail traders pay no commissions. See how this stacks up in our full fee comparison across all 16 platforms, or use the fee calculator to estimate costs for your trading volume.
| Fee Type | Novig | Kalshi |
|---|---|---|
| Trading Fees | None (retail) | ≤1.75¢/contract (formula-based) |
| Exit / Sell Fee | None | entry only (sell/exit is free) |
| Revenue Model | No trading fees for retail users (sweepstakes model); makes money via data monetization and market making | Per-trade trading fee (charged when you buy at market price) Scales with odds: max 1.75¢ at 50/50, near-zero for longshots. |
| Politics/Policy Markets | Not primary focus | Politics and policy markets: zero taker fees, zero maker fees |
Unlike CFTC-regulated exchanges that span economics, politics, weather, and finance, Novig is built primarily around sports. Market coverage: Sports (primary focus).
The exchange-style order book — as opposed to sportsbook fixed odds — means prices are set by traders, not the house. This typically results in tighter spreads on liquid markets.
Interested in sports prediction markets more broadly? CFTC-regulated platforms like Kalshi and Polymarket also offer sports event contracts. See the full sports markets guide →
Available in 35+ states + DC (as of March 2026 per Novig official help center); blocked states vary by source but confirmed blocked: AL, AZ, CO, CT, ID, LA, MI, MT, NJ, NV, NY, TN, WA and others
~10 States Blocked
States that prohibit or restrict sweepstakes-style gaming can restrict access to Novig. Public reporting has pointed to blocks in states including AL, CO, ID, LA, MI, MT, NV, and TN. As sweepstakes laws vary by state, availability can change.
Check your eligibility before signing up. Use the State Checker tool →
| Feature | Novig | Kalshi |
|---|---|---|
| Regulatory Status | CFTC DCM pending | CFTC-regulated DCM + DCO |
| Trading Fees | None (retail) | ≤1.75¢/contract (formula-based) |
| Market Types | Sports (primary focus) | Economics, Politics, Sports, Weather, Finance |
| State Availability | 35+ states + DC (sweepstakes laws apply) | Most US states (litigation in 20+ federal and state actions pending as of April 2026. Mixed outcomes: NJ 3rd Circuit ruled for Kalshi (Apr 6); CFTC won Federal TRO in AZ (Apr 10, PR 9211-26); OH OCCC $5M fine notice (Apr 14); KY HB 904 enacted via veto override (Apr 14); WA AG civil suit pending (Mar 27). states) |
| Revenue Model | Data monetization + market making | Per-trade trading fee Fee varies by odds; free on politics markets. |
| Best For | Sports traders who prioritize zero fees | Traders wanting full regulatory protection across all market types |
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