Yet another first from New Jersey’s long laundry list of national gambling launches was announced on Thursday as Sporttrade — a four-year-old sports betting technology company based in the Philadelphia area — made its debut.
The “first and only dynamic sports trading marketplace,” as Sporttrade describes itself, allows customers to “use Sporttrade to trade in and out of positions on sports outcomes much like they would trade stocks, options, or cryptocurrencies.”
Alex Kane, the founder and CEO Sporttrade, said in a statement, “We are proud to be the first operator to launch a unique and differentiated product designed for sports betting and trading enthusiasts seeking a better customer experience.”
Sporttrade’s “capital markets-like approach” is centered around its use of market makers to provide liquidity to the exchange. Those market makers are said to provide “tight, liquid, and dynamic markets so that customers can trade frictionlessly both before and during games.”
Sporttrade also offers unique order types like limit orders that allow customers to buy or sell outcomes at customized prices. Sporttrade says it will become the only source in New Jersey for customers to “truly trade sports.”
“We set out to create a better and more modern sports betting platform tapping into Americans’ passion for trading,” Kane added. “What we’ve launched is the only differentiated sports betting platform in the U.S., but we believe we are defining a whole new category of sports wagering — trading sports.”
The initial trading markets
Sporttrade will initially offer trading on win/loss outcomes, spreads, and over/unders for NFL, NBA, MLB, NHL, WNBA, golf, and college football and basketball.
Sporttrade is additionally working toward launching in Colorado with GF Gaming and its local affiliate Easy Street Casino in 2023, with other states potentially on tap including Indiana and Louisiana.
While Prophet Exchange just weeks ago launched its own new twist on sports betting, that is a peer-to-peer platform that enables customers to potentially match bets for a given sporting event. Sporttrade describes itself as more of an institutional grade sports trading exchange — somewhat like Robinhood for sports betting. By using capital markets tech and infrastructure, Sporttrade has built an exchange that allows a consumer to trade in and out of sports bets just like trading stocks or crypto.
Also, because Sporttrade touts those “institutional market makers to match trades,” it cites deep liquidity and tighter spreads than any other exchange or traditional book.
The company offers an example for a New York Mets game: “Mets trading at $54 means that the Mets have a 54% chance of winning according to our market makers. If the Mets win, the contract settles at $100, giving you a $46 profit, less a 2% commission. If they lose, the contract settles at 0 and you lose $56.
“But you can trade in and out of that position at any time — giving you complete control over your bet.”