Published on: June 17, 2026, at 12:05 PM.
Updated on: June 17, 2026, at 12:05 PM.
- Novig has received approval from the CFTC for Designated Contract Market (DCM) status.
- Competitor ProphetX obtained similar regulatory approval just days earlier.
- Novig operates within a sports-focused prediction market framework.
On Tuesday, Novig, which specializes in a sports-centric yes/no exchange, announced it has gained crucial regulatory endorsement to function as a national prediction market.
The Commodities Futures Trading Commission (CFTC) has granted Novig the designation of a Designated Contract Market (DCM), which will allow the firm to “expand across the nation under a unified regulatory system.” This DCM license is critical for any entity aiming to operate a regulated prediction market in the United States.
“With the CFTC designation, Novig can operate in all 50 states and incorporate rigorous safeguards typically associated with financial markets, including improved market oversight, defenses against manipulation and insider activities, and extensive compliance protocols to safeguard participants,” the company stated.
Novig claims that this approval is among the fastest ever granted by the CFTC, which oversees prediction markets.
Increasing Competition in Prediction Markets
The burgeoning prediction markets sector is becoming even more competitive, with Novig’s DCM licensing and its competitor ProphetX also gaining similar regulatory recognition recently. On June 11, ProphetX announced its approval to operate “America’s inaugural federally regulated sports-native prediction market.”
Such approvals come as Kalshi continues to dominate prediction market volumes in the U.S., yet notable challengers are emerging, including Polymarket and Crypto.com. Polymarket is in the process of expanding its reach to a wider U.S. audience. Additionally, traditional gaming firms and brokerage houses are entering the prediction market arena. Companies like Coinbase Global, DraftKings, FanDuel, and Robinhood Markets are amongst those making their presence felt.
Novig and ProphetX believe they can establish significant niches as sports bettors begin to seek alternatives to traditional sportsbooks.
“Our stance is clear – prediction markets create a fair and transparent environment in a space currently dominated by misleading sportsbooks,” stated ProphetX CEO and cofounder Dean Sisun on X. “It’s that simple. Sportsbooks are operating unethically. Anyone looking for an enhanced experience should be wishing for their downfall. We remain committed to challenging them.”
There is growing evidence that bettors are favoring the sports-first models of Novig and ProphetX. Specifically, Novig has attracted investment totaling $105 million through two rounds of funding since last year, achieving over $5 billion in cumulative volume as more users gravitate towards a platform prioritizing efficiency and transparency.
New Players Entering Prediction Markets
Adding to the competitive landscape is 365Prediction, led by former PlayUp CEO Dr. Laila Mintas, who is pursuing DCM approval from the CFTC.
Mintas advocates for event contracts, emphasizing that this emerging sector could potentially make conventional sports betting outdated. She argues that sports derivatives should be viewed more as trading rather than betting, as these transactions occur on an exchange without competition against a powerful “house.”
365Prediction argues that the definition of “gaming” should be established at the federal level rather than through a maze of state regulations. The company is optimistic that the CFTC will recognize that “exchange-traded, centrally cleared event contracts are NOT categorized as ‘sports betting’ under state legislation.”