The Huddle Episode: Interview with Jacob Fortinsky

Hosts & Guests

• Host: Brian Joseph (Las Vegas correspondent)
• Guest: Jacob Fortinsky (co-founder and CEO of Novig)

Jacob Fortinsky’s Background

• Graduated from Harvard (studied Philosophy, Political Science, and Economics)
• Mathematics and politics background: worked on campaigns, in banking, and at a hedge fund
• Started Novig during senior year of college, combining interests in poker, trading, and sports betting

Novig Overview

• Type: Sports betting exchange, not a traditional sports book
• Market: Early days for sports exchanges in the US; more common in Europe
• First Market: Recently launched in Colorado, with plans to expand to other states

Differentiation from Traditional Sports Books

• Technology: Incorporates cutting-edge financial exchange technology
• Business Model: Commission-free for casual bettors; revenue from professional bettors and market makers
• Market Making: Users can set their own prices, not just accept listed odds

Concept of Sports Betting Exchange

• Price Making: Users can create their own odds, similar to NASDAQ or eBay
• Public Price Discovery: User-determined prices mirrors stock market mechanics

User Experience & Education

• Target Audience: Both experienced (sharp) bettors and casual fans
• Onboarding Casual Users: Emphasize better prices and user experience rather than detailed education
• Network Effects: More users lead to tighter spreads and better odds

Investors and Funding

• Notable Investors: Joe Montana, Lux Capital, Y Combinator
• Investment Strategy: Opted for Silicon Valley investors over industry insiders for fresh perspectives

Regulatory & Market Expansion

• Colorado Launch: Primarily low-vig bets, expanding features over time
• Future Plans: Expanding to other states and possibly international markets; introducing new betting products

Perspective on the Industry

• Daily Fantasy Sports: Innovative but niche market
• Traditional Sports Books: Expect consolidation and more competition-based differentiation
• Future of Betting: Believes exchanges will outcompete traditional sports books by cutting out the middleman and reducing operational overhead

Admiration & Strategy

• Respected Entities: Betfair, Smarkets, Circa, Pinnacle; organizations that innovate without mimicking competitors
• Internal Development: Novig develops its own models and trading strategies, unlike many competitors

Conclusion

• Jacob Fortinsky: Emphasizes innovation, user-experience, and strategic funding to reshape the sports betting industry