Novig Adds Responsible Trading Framework, 21+ Age Requirement to Prediction Market Rulebook

Novig is making accountable buying and selling a part of the working guidelines for its federally regulated prediction market, adopting a broad framework that features a uniform minimal age of 21, customer-set limits and necessities governing advertising and marketing, platform design and the monitoring of probably dangerous exercise.

The requirements are contained in a new Chapter 14 that Ludlow Exchange, the Commodity Futures Trading Commission-designated contract market doing enterprise as Novig, has filed for addition to its rulebook. While a number of prediction market platforms already provide funding caps, buying and selling limits, timeouts or self-exclusion, Novig’s framework additionally establishes tasks for the trade itself, together with reviewing new contracts for participant-protection issues and intervening when buying and selling patterns point out potential loss-chasing.

“Responsible buying and selling shouldn’t relaxation solely with the shopper — it ought to at all times start with the trade itself,” Jacob Fortinsky, Novig co-founder and CEO, mentioned in a information launch asserting the framework Thursday. “By codifying accountable buying and selling requirements immediately into our rulebook, we’re holding ourselves to the identical high normal we count on of our individuals and establishing a brand new benchmark for the way federally regulated prediction markets ought to function.”

The transfer offers Novig a direct response to criticism that prediction markets enable youthful clients to commerce sports activities contracts with out the safeguards generally discovered at regulated on-line gaming platforms. It additionally builds on accountable buying and selling commitments Novig made round its federally regulated launch.

Framework reaches past account controls

Before a member locations a primary order, Chapter 14 requires Ludlow to present plain-language info explaining the opportunity of shedding the complete quantity risked, how pricing and liquidity work, and that buying and selling doesn’t assure earnings. The platform should additionally show the quantity in danger, most potential loss, and important settlement phrases earlier than an order is submitted, whereas making positions, publicity, and realized and unrealized positive factors or losses accessible.

The guidelines prohibit promotions that concentrate on folks youthful than 21, attraction to monetary hardship, use deceptive “risk-free” language or are triggered solely by a member’s current losses. Incentive packages can’t reward escalating deposits, losses or sustaining shedding positions. Ludlow should additionally contemplate whether or not app options obscure danger, create synthetic urgency or encourage speedy and repeated buying and selling.

The framework extends to the contracts Ludlow lists. Reviews should contemplate elements together with period, volatility, complexity and the way simply individuals can repeatedly enter a market. Ludlow could decline to checklist a contract or impose tighter place limits, enhanced disclosures or different protections.

Monitoring provisions determine speedy will increase in deposits or place sizes, repeated deposits following losses, makes an attempt to improve limits and obvious loss-chasing as potential warning indicators. Responses can vary from instructional prompts and direct outreach to suspending promotions or proscribing a member’s capacity to deposit funds or open positions.

Novig mentioned it submitted the foundations to the CFTC by the company’s self-certification course of on Aug. 12 and intends to implement them no sooner than the tenth enterprise day following the submitting. The trade mentioned all necessities will probably be obtainable when the foundations take impact besides session-time reminders, that are scheduled to launch earlier than the top of 2026.

Limits and timeouts already obtainable on Novig

Novig’s app already shows accountable buying and selling instruments as separate choices on the primary settings display screen. The Trading Limits web page permits customers to set buy or order limits that take impact instantly upon saving. For the next 24 hours, a longtime restrict could be lowered however can’t be elevated or eliminated, matching the minimal delay required beneath Chapter 14.

A separate Time Out possibility blocks customers from accessing their accounts, inserting orders or in any other case utilizing the platform for a particular interval. The web page additionally hyperlinks to SelfExclude.io, which permits customers to exclude themselves throughout collaborating prediction market platforms, not simply Novig.

Novig’s Responsible Trading menu gives entry to the brand new coverage and a help helpline. The latter opens the federal Substance Abuse and Mental Health Services Administration (SAMHSA) helpline web site, a free referral and data service for folks and households going through psychological well being or substance-use problems. It is a basic behavioral-health useful resource somewhat than a helpline devoted particularly to drawback playing or buying and selling.

Other platforms additionally provide accountable buying and selling safeguards

Novig describes its minimal age because the business’s “solely nationwide 21+ age normal.” However, Novig just isn’t obtainable in each state, excluding customers situated in Arizona, Michigan and Nevada, and it’s not the one prediction market platform to require all clients to be a minimum of 21.

Fanatics Markets additionally has a uniform 21+ requirement all over the place it operates, though its footprint is barely 23 states. Most main prediction market platforms, together with Kalshi and Polymarket, enable customers to start buying and selling at 18. Fanatics Markets additionally provides day by day, weekly and month-to-month deposit limits, day by day session limits, timeouts lasting from three to 12 months, and self-exclusion for a minimum of one 12 months. 

Kalshi has a “accountable danger administration” part throughout the “account & safety” space of its app that features a voluntary opt-out, personalised funding cap, buying and selling limits and day by day session-time limits.

Besides Fanatics, different sportsbook operators getting into prediction markets have equally prolonged their present accountable gaming programs to their occasion contract buying and selling merchandise. DraftKings Predictions customers can entry cooling-off durations, self-exclusion and account limits, whereas FanDuel Predicts gives comparable instruments. 

Novig’s distinction is due to this fact not that increased age limits or particular person safeguards are absent elsewhere. It is the choice to place a broader set of obligations masking advertising and marketing, platform design, contract evaluate and intervention immediately into the rulebook of its federally regulated trade.

Responsible buying and selling turns into a part of Novig’s pitch

Novig’s emphasis on accountable buying and selling predates the brand new rulebook chapter. Shortly earlier than its regulated platform launched, the corporate introduced it had employed Adam Warrington, who was beforehand vp of accountable gaming at FanDuel. Warrington oversees Novig’s accountable buying and selling technique and communications.

The focus comes as prediction market safeguards have induced divisions inside the issue playing subject. In May, the National Council on Problem Gambling accepted a $2 million, two-year funding from Kalshi and made the trade its first member in a brand new monetary companies and buying and selling class. The Michigan Gaming Control Board subsequently withdrew from the nationwide group, whereas the Nevada Council on Problem Gambling mentioned this week it might also sever ties over the Kalshi relationship.

For Novig, inserting its requirements in an trade rulebook turns accountable buying and selling into each a regulatory dedication and a degree of differentiation as prediction markets face continued scrutiny over age limits and participant protections.

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