Novig Attributes Growth Surge to Sydney Sweeney Campaign Despite Controversy

Novig, a prediction market firm that entered the federally regulated space in early August, credits a high-profile advertising campaign featuring actress Sydney Sweeney for a dramatic spike in user engagement. The platform, which competes against established rivals Kalshi and Polymarket, unveiled its “Just Sports” promotional video on September 9.

In the ad, the 29-year-old star emphasizes Novig’s policy of excluding event contracts related to wars, deaths, and politics. According to co-founder Jacob Fortinsky, this content restriction was the very factor that led Sweeney to approach the company about acquiring an equity stake. Novig declined to disclose the size of the actress’s ownership interest.

The marketing push appears to have delivered significant results. Fortinsky told CNBC that trading volume increased by nearly 94% in the 20 days surrounding the campaign launch, while first-time deposits rose by more than 218%. In September alone, active users climbed 96% month over month and 260% year over year, with app downloads jumping over 187%. Fortinsky admitted he did not anticipate such substantial growth from the advertisement combined with the start of the NFL season.

However, the campaign was not without controversy. Several female athletes criticized the advertisement, arguing that it undermined progress in how women are perceived in sports. Fortinsky maintained that the spot was intended to highlight the platform’s offerings rather than represent female athletes, stating that he and the Novig team are fans of women’s sports. He added that the team feels no apology is necessary and remains proud of the campaign’s generally positive reception.

Beyond marketing, Novig has adopted a aggressive regulatory and operational stance. Shortly after its launch, the company filed lawsuits against multiple states, arguing they lack the authority to regulate its sports event contracts. Additionally, Novig enforces a 21-and-older age requirement for users, a policy that limits its potential revenue compared to competitors like Kalshi and Polymarket, which permit users aged 18 and up. Fortinsky described these choices as part of a culture of taking calculated, outsized risks appropriate for a fast-paced industry.

Financially, the company is reportedly raising new funding at a $2 billion valuation, according to The Wall Street Journal. This follows a $75 million Series B round in February that valued Novig at $500 million, as reported by Forbes. The firm has not disclosed the amount of capital sought in the current round or the specific investors involved.

Disclosure: CNBC maintains a commercial relationship with Kalshi, which includes customer acquisition agreements and a minority investment.