This week: Novig makes move for prediction markets

Also: Insights from our Q4 Market & Funding Report, and Bettortainment’s play to help sportsbooks better activate users during the live sports window.

January 29, 2026

Novig makes move for prediction markets with CFTC application

The news: Novig has applied for Commodity Futures Trading Commission (CFTC) registration to operate as a prediction market exchange, according to government filings dated January 21, Sportico reported on Monday. If approved as a designated contract market (DCM), the New York-based company would be able to offer event contracts across sports, culture, and entertainment to U.S. customers—positionting Novig alongside exchanges like Kalshi, Polymarket, and Crypto.com.

Zoom in: Novig’s application represents the latest strategic shift for the company, which has cycled through multiple operating models in the U.S. gambling landscape. The company launched as a licensed betting exchange in New Jersey and Colorado before pivoting to a sweepstake model operating in 42 states. Regulatory pressure around sweepstakes intensified even as Novig closed its $18M Series A in August; co-founder and CEO Jacob Fortinsky told InGame the company was already beginning to explore CFTC certification at the time. 

Why it matters: As state pressure on alternative gaming models mounts, prediction markets are emerging as the most scalable regulatory lane for betting in the U.S. But that framing has been consistent with Novig’s positioning since its onset; Fortinsky previously said he “viewed sports betting primarily as a financial product” on The BettingStartups Podcast in August 2023, which may or may not owe itself to a trading background which spanned securities markets, foreign exchange, and crypto.

Market & Funding Report: Q4 2025

The news: BettingStartups’ 4Q25 Market & Funding Report shows deal activity declined sequentially in the fourth quarter, with 9 startup investments tracked versus 16 in Q3, but still above Q2’s 6 deals. Despite fewer transactions, disclosed capital surged to $2.3B, driven almost entirely by two outlier rounds from Polymarket ($2B) and Kalshi ($300M). Excluding those prediction market raises, early-stage real-money gaming startups raised just $29M—down 76% from Q3—masking softer underlying capital deployment.

Zoom in: Early-stage rounds continued to dominate deal count, with 7 of 9 Q4 investments at seed, pre-seed, or undisclosed early stages, even as dollars skewed heavily late-stage. Across 2025, BettingStartups tracked 40 total early-stage deals, with 63% completed in the second half of the year as investor activity accelerated alongside maturing business models and regulatory clarity. Average raise size was heavily distorted by mega-rounds, with Q4’s $292.9M average dropping to just $3.3M when outliers are excluded.

Why it matters: Q4 highlighted a structural shift in how betting startups finance growth, as non-dilutive and structured capital entered the mainstream through deals like Midnite’s $100M revolving credit facility and Rei do Pitaco’s $18M growth financing. Investors also doubled down on regulated infrastructure—clearing, settlement, geolocation, and compliance—positioning these layers as strategic control points. At the same time, betting products continued converging with financial market mechanics, while speed to market emerged as a durable advantage as teams prioritize velocity, iteration, and operational leverage over long development cycles.

Sponsored by NEXT


The news: BettingStartups is partnering with NEXT.io for NEXT Summit: New York, bringing startup and early-stage innovation front and center at one of the industry’s most important U.S. events. The partnership spans NEXT Focus: Emerging Verticals (March 9) and the full Summit (March 10–11), with a shared goal of elevating new ideas across betting, gaming, and adjacent formats.

Why it matters: For founders, distribution and visibility are everything—and this partnership is about creating a real platform to be seen, heard, and connected early. NEXT Summit: New York brings together operators, investors, and decision-makers at scale, while BettingStartups ensures startup voices don’t get lost in the noise. 

Use code BETTINGSTARTUPS10 at checkout to for 10% off your full event pass.

Why Bettortainment thinks sportsbooks are wasting the live moment

The news: Fresh off ICE Barcelona, Bettortainment co-founders Gavin Puszczalowskyi and Jonathan Baxandall joined The BettingStartups Podcast to unpack why sportsbooks continue to miss the live moment. While conferences are full of talk around AI and customer retention, Puszczalowskyi argues little has actually changed year over year in how operators engage users when sport is live. The result is a persistent gap between what the industry discusses and what it delivers.

Zoom in: Bettortainment positions itself as “the home of the live betting watchalong,” using expert-led, interactive content to keep users active during live games rather than just before kickoff. Drawing on his background in radio, Puszczalowskyi emphasizes intentional, pre-planned content designed to hook audiences and keep them engaged in real time. The core thesis is that sportsbooks underutilize the live window, often conceding engagement to the broadcast instead of competing for attention inside their own ecosystem.

Why it matters: Bettortainment’s model reframes live content not as marketing, but as a retention engine built around community, participation, and dwell time. Success is measured less by views and more by how long users stay on-platform, re-engage, and continue betting while the action unfolds. Puszczalowskyi exaggerated that operators need to give “customers a reason to stay on your sportsbook,” and that the live moment may be the most underleveraged advantage.

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