Three months after it debuted in Colorado, sports betting operator Novig is shutting down to work on “huge game-changing product updates,” according to the company.
Novig wants to offer a betting exchange in Colorado whereby players set the odds. State regulators, however, have not signed off on an exchange system, so Novig has operated as a traditional sportsbook since its Colorado launch in January.
Novig’s email to its customers announcing the closing does not provide details about its platform changes or when it expects to return to the Colorado market. It offered a vague statement of “later this year.”
Colorado regulators have not approved a betting exchange system
With Novig’s departure, the Colorado online sports betting industry consists of 20 operators. The Colorado Division of Gaming oversees the market, which will celebrate four years in operation on May 1.
When Novig arrived on the scene in Colorado, it claimed to be on the cusp of offering a pioneering experience in sports betting technology. The operator set itself apart from the fray by offering commission-free sports betting, eliminating “traditional fees, providing users with a unique and cost-effective way to engage in sports betting.”
After receiving a license, it opened an online sportsbook anticipating Colorado regulators approving exchange betting. Currently, only New Jersey allows that type of system.
In an exchange betting system, bettors place their wagers and then wait for other bettors to match the bet. Players bet against each other and set the odds. While members of the Colorado Division of Gaming have discussed legalizing this type of betting platform, the board has not made any decision.
Novig customers must withdraw funds by April 30
When Novig went live, it offered moneyline, spread and total markets for the NFL, NBA, MLB, college basketball and college football. It promised to expand to include “tennis and soccer markets, as well as player props, futures, parlays, SGPs and various peer-to-peer competitions.”
Novig customers must withdraw their funds from the operator by noon on April 30. Otherwise, they will receive a check in the mail at a later date.
Another sportsbook operator in Colorado, Sporttrade, wants to offer a betting exchange as well. Unlike Novig, however, Sporttrade is already running an exchange. It opened its exchange in New Jersey in 2022.
