Novig pulls out of New Jersey amid sweepstakes legislation

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Sweepstakes-style prediction market Novig has withdrawn from New Jersey, just days after announcing a US$18 million funding round.

The move comes amid a wave of state legislation aimed at curbing sweepstakes-style betting platforms, which Novig cited in an email to its users explaining the platform restriction in New Jersey.

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Last week, New Jersey Gov. Phil Murphy signed Assembly Bill 5447, which bans most sweepstakes contests from operating in the state.

Novig’s dual-currency system falls into that category, whereby players buy Novig Coins and get Novig Cash to wager on sports for real US dollars.

In response to the bill being signed, industry advocacy group The Social and Promotional Games Association said, “Governor Murphy’s signature on Assembly Bill 5447 is a win for lobbyists and a loss for consumers.”

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The firm has also faced regulatory pushback elsewhere, including a cease-and-desist order in Arizona for allegedly operating without a license. Connecticut and Montana have passed similar restrictions, while California and New York are considering legislation.

Novig, backed by Silicon Valley investors, originally launched as a licensed sportsbook in Colorado before pivoting to the sweepstakes model for broader reach.

Unlike its rival prediction market, Kalshi, which is fighting regulators in court, Novig has so far opted to retreat from states where it faces legal challenges.

New Jersey is the fourth state it has exited since its 42-state launch in September 2024.

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