Novig, Underdog Rapidly Gaining Ground in Prediction Market Combos

Combos, prediction market vernacular for parlays, are an increasingly prominent part of the yes/no exchange lexicon, and that’s especially true on the sports event contracts front where upstarts such as Novig and Underdog are making strides with multi-leg wagers.

While the bulk of combo volume across regulated U.S. prediction markets is currently controlled by a single operator, new entrants, including Novig and Underdog, are proving there’s room for other companies to potentially gain share in this lucrative, sports-centric niche. In a new report, Eilers & Krejcik Gaming (EKG) analyst Brad Allen points out that in August, Underdog’s combo percentage of overall sports contract volume was 48.3% while Novig’s was 35.5%.

Bettors’ and traders’ thirst for prediction market combos is evident in the data. In August, multi-leg prediction market trades, the bulk of which focus on sports derivatives, accounted for half of industry-wide contract volume, up from just 14% in February, according to Allen.

Novig, Underdog Off to Hot Starts

As the EKG analyst points out, just one exchange had a larger combo percentage of contract volume last month than did Underdog. For its part, Novig placed fourth on that metric with Crypto.com’s Nadex, which clears trades for multiple companies, ranking third.

In the cases of both Novig and Underdog, the fast rises up the combo contract volume leaderboard are noteworthy because these are by no means “old” prediction market operators. They’re actually two of the newest kids on the block.

Underdog launched its wholly owned prediction market exchange in July while Novig debuted its yes/no, sports-focused betting exchange on a nationwide basis on Aug. 4.

Beyond combos as a percentage of contract volume, other metrics indicate Novig and Underdog are two of the fastest risers in the industry — a trend that could continue as the pair accelerate customer acquisition efforts now that football season is here.

Don’t Forget DraftKings

DraftKings can’t be overlooked in the combo conversation. Its 1.5% of multi-leg wagers as a percentage of overall contract volume in August is deceiving because the company didn’t offer combos on its DKeX exchange until late in the month.

That late launch affected DraftKings’ “monthly stats, but (it) traded 11 million (in combos) in four days, which represented ~36% of its total contract volume during that time,” adds EKG’s Allen.