Novig CEO Jacob Fortinsky wants sports betting regulated as a financial product, not gambling. The company plans to shift to a federal Designated Contract Market framework by summer 2024 to operate in all 50 U.S. states.
Separately, 57 Maiden's Adam Mastrelli was banned from two major sportsbooks within two months for being classified as a 'sharp' bettor.
A Financial Product Case
Fortinsky argues that betting markets resemble financial markets in their mechanics and risks. He says treating them as gambling creates regulatory fragmentation that hurts users. Current state-by-state rules make consistent consumer protections impossible, he noted.
The CEO doesn't think sports wagering fits traditional gambling frameworks. He believes market discipline from federal oversight would be better. That means shifting to rules similar to futures trading under the Commodity Futures Trading Commission.
Two Bans in Two Months
Mastrelli faced quick bans after sportsbooks identified him as a sharp bettor. Bookmakers cut him from their platforms within eight weeks of each other. They determined his betting patterns gave him an edge over the house.
He was a profitable player who consistently won on certain lines. Sportsbooks have policies to limit or exclude such bettors. Mastrelli's case shows how fast operators respond to perceived threats to their margins.
Getting to 50-State Operations
Novig's federal framework move would bypass state authorization requirements. The Designated Contract Market status requires Commodity Futures Trading Commission approval. It's a framework currently used for futures contracts but not sports betting.
The company must finalize its regulatory shift before summer 2024 to launch nationwide service. That timeline is non-negotiable for their operating model. Novig's application process is already in motion.
