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The sports prediction market Novig is leaving the Garden State.
Its decision comes after the state banned sweepstakes casino sites last week. The company recently emailed customers in New Jersey informing them of the decision.
Like other platforms using the sweepstakes model, Novig allows users to use free-to-play coins. However, they also receive a secondary coin for purchasing additional free-to-play coins. The secondary coin, known as Novig Cash, can be used and accumulated to redeem for cash prizes.
Peer-To-Peer Betting Model
Novig allows users to make predictions through peer-to-peer wagers with no traditional house edge – hence the “no vig” in the company’s name. The company touts the peer-to-peer model and the sweepstakes setup as the reason it can operate in states without online sports betting.
The prediction market also has a stable of poker players who serve as company ambassadors. Ari Engel, Nick Verducci, Casey Hatmaker, Joey Weissman, and 2024 World Series of Poker main event champion Jonathan Tamayo.
In accordance with the new law, the New Jersey Division of Gaming Enforcement will send cease and desist orders to platforms that fit the banned model. The state will fine operators violating the letters $25,000 per violation.
Novig recently completed an $18 million funding round. Since launching in September 2024, the sports prediction market’s monthly trading volume increased by a multiple of 50. The company surpassed 2 billion wroth of annualized Novig Cash.
The company notes that it is different from traditional sports betting because customers simply engage in predictions between each other.
“What we’re building isn’t just predictons – it’s a true peer-to-peer market,” said Novig CEO and co-founder Jacob Fortinsky after the funding round. “We believe users deserve a system that rewards skill, reflects true supply and demand, and gives every fan a fair shot.”
Other sweepstakes operators have also fled the New Jersey market. Several other states have considered banning sweepstakes casinos in recent months.
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