Jun 21, 2026
States are turning up the pressure on gambling and prediction markets
Read Article ProphetX and Novig secure major prediction market approvals
Updated: | First published:
Written by Damien Souness, Chief Experience Officer
Reviewed by Nick Slade
ProphetX and Novig have both secured major regulatory milestones, adding two more federally regulated competitors to the rapidly expanding prediction market industry.
The prediction market industry just got a lot more crowded.
Within days of each other, both ProphetX and Novig announced major regulatory milestones that could significantly expand their reach across the United States.
ProphetX officially launched its federally regulated sports prediction market nationwide after receiving approval from the Commodity Futures Trading Commission (CFTC) as both a Designated Contract Market and Derivatives Clearing Organization.
Meanwhile, Novig announced it had received its own Designated Contract Market designation from the CFTC, positioning the company to expand nationally under a single federal framework.
For bettors, the developments are another sign that prediction markets are rapidly evolving from a niche category into a legitimate competitor to traditional sportsbooks.
What are ProphetX and Novig?
Both companies offer sports-focused prediction market products that differ from traditional sportsbooks.
Rather than betting against the house, users trade positions against other participants in exchange-style markets.
Supporters argue the model offers greater transparency, tighter pricing and fewer conflicts of interest because operators are not directly taking the opposite side of customer positions.
Both ProphetX and Novig have positioned themselves around that message as they seek to compete with established prediction market operators such as Kalshi and Polymarket.
Why federal approval matters
The biggest advantage for prediction market operators is scale.
Traditional sportsbooks must navigate a patchwork of state-by-state regulations and licensing requirements.
Federally regulated prediction markets operate under oversight from the CFTC, allowing them to offer products across much of the country through a single regulatory framework.
That difference has become one of the most contentious issues in the broader debate around prediction markets.
Sportsbooks, tribal gaming groups and some state regulators have argued that sports-related event contracts closely resemble sports betting products and should be regulated at the state level.
Prediction market operators maintain that they are offering federally regulated financial contracts rather than traditional wagers.
The prediction market race is accelerating
The approvals arrive during a period of rapid growth for the sector.
Kalshi has become one of the largest prediction market operators in the United States, while Polymarket recently expanded access to its regulated US platform, and FIFA recently partnered with ADI Predictstreet ahead of the 2026 World Cup.
The result is an increasingly competitive market where operators are competing for the same sports fans, traders and bettors.
What bettors should understand
For consumers, more competition is usually a positive development.
Whether prediction markets ultimately complement sportsbooks or compete directly against them remains one of the biggest unanswered questions in the industry.
What is becoming increasingly clear, however, is that more companies want a seat at the table.
To give you the most accurate and helpful information, this article has been reviewed and edited by Nick Slade through our fact-checking process.
Damien Souness is Chief Experience Officer at Cipher Sports Technology Group, helping lead sports media brands such as Dimers. He specializes in creating trustworthy and data-driven content for sports fans, with experience working for globally recognized sports and media organizations.
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