Kalshi, Polymarket Sought to Buy Prediction-Market Platform Novig

Novig, the prediction-market platform that raised $18 million over the summer, has been approached by multiple suitors interested in buying the company in recent weeks, including Kalshi and Polymarket, Front Office Sports has learned.

It’s not clear whether any formal offers were made, and the other companies that made approaches were not identified. Novig isn’t actively for sale, a source familiar with the matter tells FOS. 

“Kalshi has no plans for any acquisitions at the moment,” a spokesperson for the company tells FOS. 

Representatives for Novig and Polymarket declined to comment.

New York–based Novig—named for its lack of vig, or built-in commission—runs a peer-to-peer prediction platform for betting on sports outcomes using Novig coins or Novig cash (coins are unredeemable and for fun; cash can be redeemed for real money). The platform is available as an app, which currently covers leagues including the NBA, WNBA, NFL, and MLB.

It raised $18 million in a Series A funding announced in August that was led by Forerunner Ventures. In total, Novig—which launched publicly in September 2024—has raised about $33 million since its formation in 2021. Legendary NFL quarterback Joe Montana is also one of its investors. In its August press release, the company said it has seen a 50-fold increase in monthly trading and more than $2 billion in annualized volume since that public launch. The company declined to share how many people currently use the Novig platform.

Novig, available in close to 40 states, is currently all sports, unlike Kalshi and Polymarket, which allow users to trade on issues like whether there will be a government shutdown or whether there will be a “military clash” between NATO and Russia this year.

Kalshi and Polymarket, which have spent months jockeying for attention on the internet and were featured on Wednesday night’s episode of South Park, each raised money over the summer; in June, one day after Bloomberg reported Peter Thiel’s Founders Fund led a more than $200 million investment in Polymarket at a $1 billion valuation, Kalshi scored $185 million in a funding round led by crypto-focused venture-capital firm Paradigm. In late August, Donald Trump Jr.’s investment firm, 1789 Capital, invested in Polymarket. Both Kalshi and Polymarket count the president’s son as an advisor.

Their approaches to Novig come after The Information reported this month that Polymarket received a takeover offer valuing the company at up to $9 billion, and that Kalshi is close to securing additional investment at a $5 billion valuation.

The sports event contracts offered by Kalshi and Polymarket have garnered controversy because they appear so similar to sports betting. Regulators in at least seven states have tried to rein in Kalshi’s offerings, and the company is fighting multiple court battles (most recently, the Massachusetts attorney general sued over claims the company’s sports offerings are indistinguishable from traditional sports bets offered by licensed operators). Meanwhile, Polymarket—which had been banned from operating in the U.S. as part of a 2022 settlement with the Biden Administration—is preparing to reenter the country after recently being cleared in a federal probe.

Prediction markets’ dealmaking activity has been anticipated since the summer, as companies look to capitalize on the NFL season, the busiest time for sports betting. Underdog Sports entered the prediction-markets arena earlier this month, announcing it will offer sports event contracts in 16 states through a deal with Crypto.com. Elsewhere, major pro leagues and traditional sportsbooks are very much aware of the growth in prediction markets; FanDuel recently announced a deal with derivatives exchange CME Group to enter prediction markets, although sports will not be part of the offerings, at least to start.