Novig, the peer-to-peer sports trading platform, has applied for approval from the CFTC to operate in the sports prediction market space. The process began on January 21, 2026, when the company applied for registration as a designated contract market under the name Ludlow Exchange LLC. The application is currently pending approval, with earlier reports suggesting a timeline of roughly six months for potential authorization. For a platform that raised $75 million in Series B funding just weeks later, in February 2026, achieving a $500 million valuation, the regulatory stamp would be less a starting gun and more a confirmation that the race was already well underway.
From sweepstakes to federal oversight
Novig’s path to this point has been anything but linear. The company has shifted its model multiple times, moving from a state-licensed betting exchange to a sweepstakes model that allowed it to operate in dozens of states without traditional sports betting licenses.
That sweepstakes approach generated significant trading volume, reportedly in the billions annually. A designated contract market designation would mean Novig operates under the same category of federal oversight as established derivatives exchanges.
