-
Casinos for you
Prophet Exchange Unveils the First US Sports Betting Exchange in NJ
By Jeff Osienya Aug 31, 2022 IndustryProphet Exchange has launched the very first peer-to-peer sports betting marketplace in the USA. The platform will only serve New Jersey sports fans for a start but plans to spread its footprint in Ohio and Indiana next year.On Monday, the first US-based peer-to-peer sports betting exchange, Prophet Exchange, went live after the New Jersey Division of Gaming Enforcement (NJDGE) authorized its license. Prophet Exchange was founded in 2018 in New Jersey by Dean Sisun, the company CEO, and Jake Benzaquen, who serves as the COO. Since then, the duo has been working towards this US debut. However, due to the Wire Act, a 61-year-old federal law prohibiting inter-state transmission of sports wagering data, the exchange will only work within the Garden State.
During the launch of the Prophet Exchange, Dean Sisun, the company CEO, said in part,
Quote“There is an overwhelming amount of emotion I feel for Prophet officially launching as the first fully regulated, peer-to-peer betting exchange in New Jersey. This has been a monumentally challenging journey to date, and to see it come to life is an amazing achievement for our team. That being said, this is only Prophet's first major milestone, and we will not lose sight of our north star: becoming the mainstream sports betting platform in the United States.”
Jake Benzaquen echoed his co-founder's sentiments in a separate statement saying:
Quote“Launching here in New Jersey is everything we've been working towards for four years. Being the first start-up and the first betting exchange in the United States regulated market means the world to us and our team here in Hoboken, and globally. We cannot wait to show the public who we are and what our product offers to the market here in New Jersey and beyond. As we say here, to the moon.”
Players can access the Prophet Exchange betting platform via web browsers and Android and iOS devices.
Victor Cruz Makes the First Move
Cruz, a former New York Giants player and a strategic partner and advisor of the company, called the betting exchange an industry innovator upon the long-awaited launch. To mark the historic milestone in the US sports wagering scene, Cruz was the first person to bet via the Prophet Exchange betting platform. He placed a $100 bet on the New York Giants attaining 5.55 points against the Tennessee Titans during the season opener on September 11. In addition, he placed a $100 bet on the New York Giants to win on the moneyline at +230.
When the Prophet Exchange was taken live on Monday, Cruz said:
Quote“Prophet Exchange is the sports betting platform of the future. It was great to place a bet directly with other users on the exchange without having to factor in lines that oddsmakers chose. I'm extremely proud to be a strategic partner of Prophet Exchange as they continue to innovate the sports betting world. Being a native of New Jersey, there's no company I'd rather partner with. Of course, I had to bet on my Giants for my first wager.”
The Prophet Exchange offers a new way of betting where gamblers wager against each other instead of against a sportsbook. Bettors on the exchange will set prices on their bets or place wagers on prices set by other punters. Additionally, the sports wagering platform doesn't limit the wagers placed by bettors in exchange for a 2% commission.
Unlike the traditional sports betting platforms that add vigorish or margins to their odds, the Prophet Exchange will offer its clients better prices. However, the catch is that a punter must get a counterpart who will match their wagers. So, for the first time in the United States, gamblers can showcase their understanding of odds and sports.
The newly unveiled Prophet Exchange release indicates they will offer moneyline, totals, and spread on NFL, MBA, NCAA, MLB, and NHL games. Furthermore, the exchange plans to add other sports and wagering opportunities along the way as it continues expanding its user base.
Will Prophet Manage to Match Europe's Betting Exchange Success?
The sports betting exchange is prevalent in most parts of Europe because bettors are interested in the best possible price they can get. However, unlike in Europe, sports bettors in the US haven't shown a lot of enthusiasm for this model as they are most interested in customer service and the brand.
So, as Prophet gradually matures in NJ, the platform will need to educate users about odds because if they don't have any knowledge of odds, then they won't participate in the peer-to-peer exchange. And even though the NJ market is still young, if the exchange cannot get more bettors on board, liquidity will also be another worrying issue.
Besides the Garden State, Prophet Exchange hopes to go live in Ohio and Indiana in 2023 when the company gets regulatory approval. Meanwhile, the betting exchange platform will soon have competition with Sporttrade planning to launch a similar platform in NJ come September. As for whether this model of sports wagering will bear fruit in the US market, only time will tell.
You might also like