Sports betting exchange Novig awarded license in Colorado

Colorado has awarded Novig, a sports betting exchange, one of the state's sports betting operator licenses. The betting exchange, a relatively rare proposition in the US market, becomes the first of its kind to be awarded a license in the state.

To adapt to Colorado's current regulations, which do not permit sports betting exchanges, Novig will initially introduce a traditional sportsbook for its users. Nevertheless, it's anticipated that Novig will advocate for changes to Colorado's sports betting laws in the coming years.

This development marks Novig's entry into the US market, making Colorado the first state to host their operations. The company recently secured over $6.4 million in funding from a group of investors, including NFL legend Joe Montana.

This financial backing will enable Novig to launch a traditional sportsbook, albeit with a more streamlined bet catalog, while they await Colorado's approval for sports betting exchanges.

Jacob Fortinsky, CEO of Novig, expressed his enthusiasm regarding this venture into Colorado's sports betting arena. He stated: "We're thrilled to kick off our journey in the vibrant sports betting landscape of Colorado, and we'd like to thank the Division of Gaming for their help throughout the process."

"We're committed to building an unparalleled, community-led betting experience, and we look forward to becoming the go-to destination for sports fanatics and sharp bettors alike."

Sports betting exchanges are different from traditional sports betting. Instead of selecting a bet from an online sportsbook, these exchanges empower users to craft their own wagers.

Once created, these bets are posted on the exchange platform, awaiting acceptance by another player. Essentially, betting exchange users engage in peer-to-peer betting, eliminating the conventional "house advantage." The removal of the house advantage has garnered appeal among some sports bettors worldwide. 

However, it's important to note that betting exchanges have their unique challenges. The most significant obstacle is finding another user willing to accept your bet. Crafting appealing bets can take some practice, and until users become proficient, this process may appear daunting.