CFTC Grants Novig DCM Status, Enabling Ludlow Exchange

Novig has become the latest company approved by the Commodity Futures Trading Commission (CFTC) to function as a designated contract market (DCM), enabling it to run its own prediction‑market exchange.

Novig’s DCM, called Ludlow Exchange, received approval on Tuesday, according to CFTC filings.

Currently, Novig runs a betting exchange using a sweepstakes model. In August, co‑founder and CEO Jacob Fortinsky told *InGame* that he does not view operating as a CFTC‑registered DCM and employing the sweepstakes model as mutually exclusive.

In a press release announcing the approval, Fortinsky stated that being a registered prediction market would enable the company to deliver a superior product.

“Novig is the first sports‑focused prediction market created by traders for traders, and the momentum we have observed validates strong demand for a more efficient and ultimately more profitable avenue for sports fans to engage in sports markets,” he said.

“Federal oversight enables us to scale within a framework of trust, transparency, and fairness. By aligning incentives with users and eliminating the structural disadvantages of legacy betting platforms, we are creating a fundamentally different model where participants are not playing against the house but operating within a fair and transparent market,” he added.

Novig states that with CFTC approval it will be able to operate in all 50 states and implement robust safeguards typical of financial markets, such as enhanced market surveillance, protection against manipulation and insider activity, and comprehensive compliance standards to protect participants.

Additionally, it announced that it will maintain its 21+ age requirement, whereas most major prediction markets permit users aged 18 and older.

The approval was granted five months after Novig’s application first appeared in the CFTC portal. This turnaround is markedly faster than the typical timeline a year earlier. The two DCMs approved in 2025, Railbird and QCEX (subsequently acquired by DraftKings and Polymarket, respectively), had both submitted DCM applications in 2022.Second Approval Granted Within a Week

The approval follows just five days after ProphetX received approval, meaning that two companies operating as sports‑betting exchanges have now been approved by the CFTC within a week. ProphetX had applied in January, suggesting that faster approvals may be becoming standard.

ProphetX also self‑certified its first contracts on Monday, covering baseball, hockey, soccer, tennis, combat sports, golf, basketball, and parlays.

Meanwhile, a new DCM application called 365Predictions was registered with the CFTC on Thursday. Owned and operated by former Sportradar executive Laila Mintas, it brings the total number of pending DCM applications to 17.

Some of these firms may not intend to run a prediction market themselves, but they could become acquisition targets for companies that prefer to avoid the full DCM application process.

Source link