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Novig, a New York-based sweepstakes operator, received CFTC approval Tuesday to operate its Ludlow Exchange as a designated contract market. The DCM license authorizes Novig to offer regulated event contracts on sporting outcomes nationwide under a single federal framework. The company is preparing to launch its sports-focused prediction market platform this month and is positioning itself as the first prediction market built specifically for sports fans to operate under CFTC oversight. The approval places Novig among a small number of CFTC-registered platforms authorized to offer event contracts in the U.S. market.
Why this matters?
Novig must now race to launch and capture liquidity before DraftKings' DKeX clears its self-certified contracts and Robinhood scales its existing brokerage distribution. ProphetX's five-day launch shows that first-mover advantage in this window is measured in days, not months.
The bigger picture
Becomes the latest CFTC-registered platform cleared for sports event contracts, after ProphetX launched five days post-approval.
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