Novig Leaves New Jersey After New Gambling Law Takes Effect

Sports prediction and sports trading market Novig is pulling out of New Jersey following a new law that bans sweepstakes-style casinos. The company quietly alerted customers in the state through an email on Tuesday, confirming that access will be restricted beginning August 15, 2025.

Good to know

• Assembly Bill 5447 bans sweepstakes casinos, directly impacting Novig’s model.
• Novig has now exited four states since launching in September 2024.
• The company recently raised $18 million in Series A funding.

Governor Phil Murphy signed Assembly Bill 5447 earlier this month, and under the legislation, Novig’s business is classified as a sweepstakes casino. The platform lets users buy credits that carry “no real-world value” and then wager on sports events. If successful, payouts are made in U.S. dollars. That model now falls under the definition of a “contest or game” in New Jersey law, which is prohibited.

In an email to users, Novig wrote:

“We are reaching out to inform you of a change to your Novig account. Due to new legislation, Novig will be required to restrict platform usage for users located in the state of New Jersey starting August 15, 2025.”

What makes the timing unusual is that Novig had just secured $18 million in a Series A round days before announcing the shutdown. Investors had backed the company’s vision for expanding sports prediction markets, but the new law forces Novig to leave one of the nation’s key betting states.

New Jersey is not the first state loss for Novig. Since its debut in September 2024 with operations in 42 states, the platform has now exited four markets due to regulatory hurdles. The company has yet to issue a public statement beyond its customer emails.