Prediction market operator Novig has left New Jersey after new legal restrictions were introduced, just days after announcing its Series A funding round, which raised $18 million.
In an email to New Jersey customers, Novig declared that platform usage would be “required to restricted platform usage for users located in the state of New Jersey.”
New Jersey’s Governor Phil Murphy signed Assembly Bill 5447 earlier this week, which banned most types of sweepstakes casinos from operating in the state.
Novig operates by having users purchase “Novig Coins” or “Novig Cash,” which can only be used to place bets and cannot be transferred to USD. Yet, as Novigs’ currency can be used to place bets that payout in USD, it is now banned as it is considered an illegal exchange under New Jersey law.
A spokesperson for the Social and Promotional Games Association, an advocate of sweepstakes casinos, criticized the new law, saying, “Governor Murphy’s signature on Assembly Bill 5447 is a win for lobbyists and a loss for consumers. States simply shouldn’t be in the business of telling American adults what games they can and can’t play on their phones.”