Novig, a CFTC-regulated sports prediction market, has partnered with the National Council on Problem Gambling (NCPG) to create a responsible trading framework that spans the full customer lifecycle of the exchange’s account holders. On Thursday, an official statement that explains how the partnership will impact responsible trading initiatives was released publicly.
According to the press release, Novig will incorporate “a broad set of responsible trading standards” directly into its rulebook. The exchange is known for focusing exclusively on sports event contracts and for implementing a minimum age requirement of 21 to use its services.
Novig CEO Jacob Fortinsky praised the exchange’s partnership with the NCPG on Thursday. “Trust is the foundation of every market, and it’s earned through clear rules and accountability. Responsible trading shouldn’t rest solely with the customer—it should always begin with the exchange itself. By codifying responsible trading standards directly into our rulebook, we’re holding ourselves to the same high standard we expect of our participants and establishing a new benchmark for how federally regulated prediction markets should operate.”
The NCPG framework that will be codified into Novig’s responsible trading standards starts with the 21-year-old minimum age requirement, a restriction that other CFTC-regulated prediction markets have yet to implement. That rule alone has allowed Novig to avoid allegations of underage gambling brought forth by numerous states in lawsuits against prediction markets.
The framework will also enable Novig customers to toggle various responsible trading measures, including the ability to self-exclude, set deposit and exposure limits, and establish delays before deposit limits are increased. Furthermore, Novig is setting a standard by self-excluding its own marketing practices from tactics such as appealing to a trader’s financial hardship and tying promotions to an account holder’s recent losses.
Novig’s new risk-based monitoring will trigger internal alarms when an account holder shows patterns that could be linked to irresponsible behavior, such as abnormal spikes in deposits, attempts to remove an established self-exclusion, and spikes in trading activity.
Earlier this year, the NCPG teamed up with Kalshi in a first-of-its-kind partnership with a prediction market platform. Shortly thereafter, the Michigan Gaming Control Board (MGCB) cut ties with the council, citing the state’s unwillingness to work with an organization that partnered with prediction markets.
Most recently, the Nevada Gaming Control Board (NGCB) has stated that it will likewise end its partnership with the NCPG. Both states, Nevada and Michigan, view prediction markets as “illegal gambling” and have pursued legal actions against exchanges that offer sports-based and other event contracts to residents and visitors located inside their borders.
At present, Novig is one of the leading CFTC-regulated prediction markets in the country, but its trading volume still lags behind industry leaders Kalshi and Robinhood by a significant margin. Novig offers sports event contracts to customers throughout most of the country, but remains geofenced in select jurisdictions even after transitioning away from its previous sweepstakes business model.
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