Novig Proposes Regulating Sports Betting as Financial Product
Jacob Fortinsky, CEO of Novig, argues for federal regulation of sports betting as a financial product, not gambling. During the Consensus Miami 2026 event, he stated that Novig will transition to a federal Designated Contract Market model to operate in all 50 states. CoinDesk reported on May 9, 2026.
At Consensus Miami 2026, Jacob Fortinsky, the CEO of sports betting platform Novig, outlined plans for his company to shift from a state-licensed sweepstakes model to a federal Designated Contract Market (DCM) framework. This change is scheduled for the summer of 2026 and will allow Novig to provide services across all 50 states. Fortinsky believes that the current sportsbook model is flawed, as it often penalizes winning bettors by treating them as cheaters.
Fortinsky argues that sports betting should be classified as a financial product, emphasizing that sports event contracts operate like binary financial instruments. He claims that the industry, valued globally at approximately $2 trillion, is mostly controlled by traditional casinos that resist innovative models that could enhance consumer protection or market efficiency.
Adam Mastrelli, co-founder of 57 Maiden, a firm specializing in prediction market strategies, shared his personal experiences of being banned from major sportsbooks within two months due to winning strategies, highlighting the industry's resistance to successful bettors. This experience led them to consider platforms like Novig, which he stated does not impose trading fees and allows for the creation of synthetic positions.
In Fortinsky's view, the shift to a federal regulatory framework could help resolve legal conflicts regarding sports event contracts, which he anticipates may escalate to the Supreme Court. He notes that there are currently 15 lawsuits involving the Commodity Futures Trading Commission, Kalshi, Robinhood, and various states regarding these issues.
Mastrelli expressed concern about the sustainability of profitable trading strategies, indicating that his team’s edge is diminishing. He mentioned that their most profitable trading strategies came from the WNBA, emphasizing the need for adaptable systems in the prediction market space.
As Novig prepares for this transition, the broader implications for the regulation of sports betting and its classification as a financial product remain to be seen. Stakeholders will be watching the developments closely, especially as the debate over the legal structure for prediction markets continues and potential federal rulings loom in the next few years.
Summary based on original reporting by Jeffrey Albus at CoinDesk, originally published May 9, 2026. SolanaWire does not republish source content.
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