Why This Prediction Market Banned Teens

Novig, a prediction market that only accepts users aged 21 and above, has decided to ban teens from using its platform. This decision was made in response to concerns about the potential for younger participants to engage in risky behavior, and came following lobbying efforts from the NCAA and other professional groups. Novig's rulebook prohibits marketing to minors and outlines guidelines to prevent other practices that could appeal to younger users.

The platform, which focuses solely on sports-themed markets, avoids more contentious topics such as US elections and the Iran war. Despite this, prediction markets face ongoing regulatory battles across the US, with states suing platforms like Kalshi for illegally offering gambling. Novig is also involved in legal disputes, suing multiple states to block them from applying their gambling laws to its federally licensed exchange.

The company's founder sees its peer-to-peer model as distinct from traditional sportsbooks, which he deems as "inefficient, exploitative, and predatory." However, as Novig moves towards integrating financial institutions and allowing algorithmic trading, it risks attracting larger players who could potentially replace teen users.