The Sports betting industry is booming. With hundreds of billions (Yes, not Millions, Billions!) of dollars being wagered each and every year across the United States and with NJ’s top sportsbooks, such as betMGM, the market continues to expand with new sports betting companies entering the market to try and get their own slice of the betting revenue pie. Now there are clear leaders in this market, we all know who they are. But there seems to be enough slices to go around for everybody. At least that’s how it seems so far. You can not avoid a sports betting advertising campaign if your life depended on it. It is an exciting time in the world of sports. With the growing popularity of sports betting seemingly taking over.
There will be another company entering the market, but this one is different. Just like anything in life, the sports betting landscape has already started to evolve and innovate. Novig is not just looking to get a piece of the pie, they are looking to create their own…
Novig, as in, there is NO-VIG here! Will be attempting to pave their own path and be the leader and separator from “every other book”.
Before I share my opinion and outlook on Novig, let’s quickly educate everyone on exactly what Novig it will be.
What is Novig?
It will be a peer to peer betting exchange that offers its users the ability to place bets with their friends or other consumers in the market. Right away it is clearly distinguishing itself and removing themselves from the traditional books and traditional ways of placing bets and making bets “against the house”. So can it succeed? How will Novig not only successfully capture new users, but successfully RETAIN their new users? It will certainly be an uphill battle, but I believe it to be realistic.
Here are some immediate potential thoughts that I have regarding any disadvantages, pushback, as well as advantages and opportunities that come to my mind.
Why should I use Novig to make bets with my friends?
If I am hanging out watching the game with my friends, doesn’t it seem easier to just turn to your buddy and say “Hey I will take Team X with the points, you take Team Y, and the loser hops on Venmo, cash app, apple pay, or goes directly to their pocket to pay the wager. So what is the hook? There has to be a hook to get consumers who are currently traditionally betting and enjoying themselves across a wide variety of options that already exist, to then decide to make the jump to Novig’s betting lifestyle.
Free Bets to use upon sign up is the obvious first option that comes to mind. The second one is how user-friendly will the app interface/website actually be? If Novig is able to assert themselves early on with a big-time promo, then they should have some success in at least generating sign-ups/new users.
How Can these exchanges such as Novig compete in an already competitive market?
There seems to be plenty of potential and opportunity with the peer to peer betting Novig will be offering. Can these betting exchanges use social media to their advantage? The whole world lives on apps such as Instagram, Facebook, X (Formerly known as Twitter), etc. Why? Because of the instant gratification these apps provide, it feeds to the attention seeking and validation behavior that we all crave, whether we want to admit it or not. Social media is one big “flex” as the kids say, and Novig can use their peer to peer betting concept in a similar way. Competing against other bettors across the country, having a ranking system, and being able to share your success/failures across other platforms or within their own platform is something that intrigues me. How realistic is this? I have no clue. But when trying to think of “The hook” and ways that these exchanges can realistically compete, that seems to be one of the better possibilities.
Novig has already gone on record with their CEO Jacob Fortinsky calling out the rest of the “traditional” companies when promoting Novig:
“Our vision is clear: to reshape the sports betting landscape that has long favored exploitation over innovation, and to usher in an era of integrity, transparency and empowerment.”CEO Jacob Fortinsky
Jacob is not wrong, I completely agree. But I don’t think it matters. The majority of bettors out there just truly enjoy placing wagers on game day. The majority of bettors are simply casual/recreational betters who do not feel that they are being exploited and taken advantage of. The exploitation and the large margins used by the traditional books are not an issue for most of the betting public. That does not make it ok, but my point is that I don’t know how successful of a selling point it can actually be. Professional bettors or the sharps, who battle against the books constantly would seem to be the appropriate target audience regarding these issues.
Either way, I love the concept. I am certainly looking forward to testing Novig out when it comes to market. I think their reality in the early stages is a long, challenging path to finding sustainable success. I wish them luck, and overall, this is a huge positive for the sports betting world. Innovation, fresh ideas, and new ways for the betting public to bet on sports, is always a winning bet in my book!
Novig Sets the Stage for a P2P Betting Revolution in New Jersey, 2023
Novig is gearing up to introduce its peer-to-peer (P2P) betting exchange in New Jersey come 2023, embarking on a mission to eliminate the traditional vig charged by sportsbooks. This innovative platform, bolstered by the backing of Y Combinator, is positioned to disrupt the entrenched US sports betting landscape by enabling users to place bets against friends or the broader market instead of the house. The venture reflects a larger trend, as seen with emerging US-centric startups like Prophet and Sporttrade, all eager to capture a share of the betting exchange market alongside established European entities like Flutter Entertainment-owned Betfair. By keeping overheads low and commissions nominal, these P2P platforms are challenging the status quo, potentially heralding a new era of sports betting in the United States.
List of Similar Peer-to-Peer Betting Exchanges:
- Betfair (Owned by Flutter Entertainment) – A dominant player in the European betting exchange market.
- Prophet – A US-focused startup poised to unveil its betting exchange products in New Jersey.
- Sporttrade – Another US-centric startup with plans to introduce exchange betting products in New Jersey.