Why does Novig want sports betting regulated as a financial product?

Novig argues sports betting functions more like trading financial contracts than traditional gambling. The company believes federal financial regulation would create fairer and more efficient markets for bettors and prediction traders.

What is a Designated Contract Market (DCM)?

A Designated Contract Market is a federally regulated trading venue overseen by US commodities regulators. DCMs typically allow trading of futures and event-based contracts under financial market rules rather than state gambling laws.

Why are prediction markets becoming popular in sports betting?

Prediction markets allow users to trade outcomes similarly to financial assets instead of simply placing bets against a sportsbook. Supporters argue this creates more transparent pricing and fewer restrictions for successful traders.

Why did Novig criticise traditional sportsbooks?

Novig chief executive Jacob Fortinsky said sportsbooks frequently limit or ban profitable bettors, often called “sharp” users. Critics argue this creates a system where casual losing players are favoured over skilled traders.

What does being a “sharp” bettor mean?

A sharp bettor is someone consistently successful at identifying profitable betting opportunities. Sportsbooks often monitor these users closely because they can reduce the operator’s profits over time.

Why were 57 Maiden’s founders banned from sportsbooks?

57 Maiden founder Adam Mastrelli said he and his co-founder were removed from two major sportsbooks within months because they were considered highly profitable bettors. The experience pushed them toward prediction market platforms instead.

How are prediction markets different from casinos?

Prediction markets operate more like trading exchanges where users buy and sell contracts tied to real-world outcomes. Supporters say the model resembles equities or futures markets more than traditional casino gambling.

Why does Novig want to expand to all 50 US states?

Novig said moving to a federal DCM structure would allow nationwide access without relying on individual state gambling approvals. This could significantly expand the platform’s potential user base.

Novig pushes sports betting as financial market

Written by Liezl GambePublished May. 11 2026Last Updated May. 11 2026

Novig chief executive Jacob Fortinsky said sports betting should be regulated as a federal financial product rather than a state-controlled gambling activity during a panel discussion at Consensus Miami 2026.

Fortinsky argued that traditional sportsbooks operate under a flawed model because profitable bettors are frequently restricted or banned instead of treated as legitimate market participants.

“Sports betting is really the only industry in the country that regularly limits and bans their power users,”

Fortinsky said.

Fortinsky said Novig plans to transition this summer from a sweepstakes-based system operating in 35 states to a federal Designated Contract Market structure that would allow the platform to launch across all 50 US states.

57 Maiden founder Adam Mastrelli supported the criticism of legacy sportsbooks, saying he and his co-founder were banned from two major betting platforms within months because they were considered “sharp” bettors.

Mastrelli said his company now builds AI-driven trading strategies for prediction markets and views sports event contracts more like financial trading instruments than casino products.

Fortinsky predicted the legal battle between federal regulators, prediction market operators and US states over sports event contracts could eventually reach the US Supreme Court within two to three years.

The discussion highlighted growing overlap between prediction markets, financial trading infrastructure and sports betting as platforms attempt to reposition wagering contracts as regulated financial products rather than traditional gambling services.