Novig Drawing Takeover Curiosity, Together with From Kalshi, Polymarket

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Varied suitors, together with Kalshi and Polymarket, have expressed curiosity in doubtlessly shopping for Novig
Unknown if formal provides have been made
Novig runs a peer-to-peer prediction alternate

Novig, the operator of a US peer-to-peer sports activities prediction market, is reportedly garnering takeover curiosity from numerous corporations, together with bigger rivals Kalshi and Polymarket.

Novig, a peer-to-peer sports activities prediction market, has reportedly drawn takeover curiosity. (Picture: YouTube)

Entrance Workplace Sports activities broke the story, reporting that “a number of suitors,” together with Kalshi and Polymarket, have in current weeks kicked the tires on shopping for Novig, nevertheless it’s not clear if provides have been made. Citing an unidentified supply accustomed to the matter, the publication provides Novig isn’t actively procuring itself.

Based by Jacob Fortinsky and Kelechi Ukah, Novig is available in more than 40 states, together with California and Texas, neither of which at the moment permits conventional sports activities wagering. Final month, the corporate introduced it raised $18 million in a Collection A funding spherical. That capital elevate was led by Forerunner with participation from current buyers Gaingels, NFX, Perceptive Ventures, and Y Combinator.

Novig Takeover Curiosity Credit score to the Firm

Assuming the report that bidders are inquisitive about Novig is correct, it’s arguably a credit score to the corporate as a result of it launched publicly only a yr in the past.

In consequence, it’s one of many smaller gamers within the prediction markets house. In accordance to data from Dune Analytics, the highest prediction markets as of final week, as measured by weekly notional quantity, have been Kalshi, Polymarket, Limitless, and Myriad. Largely dominated by Kalshi and Polymarket, that quartet additionally leads throughout different metrics, together with open curiosity, general quantity, weekly transactions, and weekly customers.

Regardless of its lack of measurement relative to Kalshi and Polymarket, Novig may make for a reputable takeover goal for a number of causes, together with the will of gaming corporations to probably enter the occasion contracts enviornment. FanDuel proprietor Flutter Leisure (NYSE: FLUT) already introduced a associated transfer, prompting analysts and buyers to invest it’s only a matter of time earlier than rival DraftKings (NASDAQ: DKNG) does the identical.

Entrance Workplace Sports activities studies “different corporations” have expressed curiosity in Novig, however these corporations weren’t recognized within the article.

Novig Has Extra Promoting Factors

For gaming and prediction market suitors alike, Novig provides different sources of attraction, together with the truth that its contracts revolve solely round sports activities. In contrast to Kalshi and Polymarket, Novig doesn’t supply derivatives on monetary asset costs, financial information, or popular culture occasions.

Moreover, Novig’s peer-to-peer mannequin, beneath which shoppers compete towards one another and never the corporate, has the potential to allay some regulatory considerations whereas making a extra devoted buyer base. The corporate lately mentioned greater than 90% of trades processed on the platform are executed in peer-to-peer style.

Talking of regulatory points, sportsbook operators are treading fastidiously on the subject of prediction markets as a result of they don’t need to run afoul of state laws. To little fanfare, Novig lately left New Jersey, and that could possibly be considered by potential patrons from the gaming business as a result of these suitors wouldn’t need to jeopardize sports activities betting licenses in that state.