Novig Given Colorado License; Awaiting Decision On Sports Betting Exchanges

Written By Connie Reinert on 10/10/2023
Graphic of stock exchange and Novig logo with story on new license in Colorado.

Novig has received an online sportsbook license from the Colorado Division of Gaming to operate in Colorado. The New York company must now await approval by the Colorado Limited Gaming Commission to launch its sports betting exchange.

Novig promotes itself as the first commission-free, high-frequency sports betting exchange operator. Company officials say Novig’s model guarantees users the best odds because the users themselves choose them.

If the exchange sports wagering system is approved, Novig’s first US launch will be in Colorado.

Novig and Sporttrade wait for decision on exchanges

Novig will be the 20th Colorado online sports betting operator when it launches. Colorado had more than two dozen sportsbooks operating in the state at the beginning of 2023, but several have ceased operations in the last several months.

The company has established a 10-year partnership with Full House Resorts at its Bronco Billy’s Casino in Cripple Creek. Initially, Novig’s app will offer betting on MLB, NFL, NBA, NCAAF and NCAAB matches. Customers will be able to place a variety of bets, both pre-game and in-game.

  • Moneyline
  • Point spread
  • Game totals
  • Team futures

Novig CEO and co-founder Jacob Fortinsky expects a positive decision on exchanges by Colorado regulators.

“We’re thrilled to kick off our journey in the vibrant sports betting landscape of Colorado. And we’d like to thank the Division of Gaming for their help throughout the process. We’re committed to building an unparalleled, community-led betting experience. And we look forward to becoming the go-to destination for sports fanatics and sharp bettors alike.”

The company was founded in 2021 by Fortinsky and Kelechi Ukah. Novig raised $6.4 million in a seed funding round that ended in August. Investors included Joe Montana, Y Combinator and Lux Capital.

Novig competitor Sporttrade launched in August and will operate as an online sportsbook until exchange wagering is approved in Colorado.

The future of exchange wagering in Colorado

Exchange betting’s most unique aspect is that it allows friends to bet directly with each other, rather than against the sportsbook. Novig believes that makes the betting experience more efficient, fair, and, most importantly, profitable.

Colorado gaming regulators took no action on proposed rules for exchange wagering in June. Officials were concerned the new rules would create a tax loophole for players. The delay will give regulators an opportunity to revise the rules.

Exchange wagering is sometimes compared to a stock exchange because people can buy and sell shares of their bets. An exchange wagering operator makes money by charging a fee on bets.

Like all sportsbooks in Colorado, exchange operators will pay the 10% state gambling tax on the fees and is responsible to follow all of the state’s gambling laws.

Currently, New Jersey is the only state to allow online betting through an exchange. Last fall, both Prophet Exchange and Sporttrade launched in the state.

Photo by Shutterstock / Illustration by PlayColorado
Connie Reinert Avatar
Written by
Connie Reinert

View all posts by Connie Reinert