Novig and Underdog See Huge Growth in Prediction Market Combos
As the field of prediction markets continues to grow rapidly, more and more actors are investing in it, with varying success. However, Novig and Underdog, two relatively new players in the rapidly evolving scene, are making strides thanks to their “combos” – what the industry calls parlays. Novig a…
As the field of prediction markets continues to grow rapidly, more and more actors are investing in it, with varying success. However, Novig and Underdog, two relatively new players in the rapidly evolving scene, are making strides thanks to their “combos” – what the industry calls parlays. Novig and Underdog Are Growing Fast In a recent report, Eilers & Krejcik Gaming (EKG) analyst Brad Allen noted that Underdog’s combo percentage of overall sports contract volume reached 48.3% in August, while Novig posted a 35.5% share. He attributed the surge in part to Underdog’s narrower contract breadth, as well as a customer base already accustomed to building parlays through the company’s core pick’em product. Novig and Underdog’s swift rise up the contract volume rankings is particularly notable given the relatively short time both platforms have been operating. Underdog launched its wholly owned prediction market exchange in July, just a few months after it acquired the Aristotle Exchange back in March to launch event contracts of its own. Meanwhile, Novig introduced its yes/no, sports-focused betting exchange nationwide on August 4. The company reported $125 million in US trading volume during its first week of operations. The figure put the newcomer ahead of established prediction market platforms Kalshi and Polymarket in trading volume during their respective first weeks. How Does Novig’s Model Differ from Other Prediction Markets? Novig differs from Kalshi and Polymarket in its primary focus on sports, with the platform not currently offering contracts tied to other real-world events, such as politics. It should also be noted that, unlike the other two major players, Novig is a private company and its stock is not traded. The company said baseball betting accounted for the largest share of sports event contracts traded on its platform during its first week of operations. Novig also launched its product in a very strategic time slot, just ahead of the upcoming NFL, NBA and Premier League seasons, which had certainly helped the company record such a high trading volume. However, prediction markets remain a hotly debated topic among legal circles, as despite being less than a month old, Novig has already become involved in the broader legal battle surrounding prediction markets. Similar to Kalshi and Polymarket, the company also maintains that its platform falls under the regulatory authority of the Commodity Futures Trading Commission (CFTC), rather than individual US states. Novig has subsequently filed lawsuits against New York, Massachusetts, Washington, New Mexico, and Wisconsin. It argues that the states cannot apply their gambling laws to the platform’s sports contracts. In other recent news about Novig, last week, the company stopped offering American-style odds, deciding instead to focus on a financial market model using percentage-based probabilities.