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Sporttrade Pioneers ‘Robinhood-Inspired Sports Trading’ in New JerseyThe Garden State continues with its streak of being a launchpad for innovation in US sports betting. Following the debut of Prophet Exchange last month, Sporttrade has unveiled its one-of-a-kind sports trading platform to offer bettors more flexibility.
Week 2 of the NFL marks a new dawn for New Jersey’s sports wagering platforms. Sporttrade, a Philadelphia-based sports betting technology firm, has launched the first-ever regulated sports trading exchange app in the Garden State. The platform has now been dubbed ‘The Robinhood of Sports Betting’ as it follows the same model as well-known stock trading brokerages like Robinhood.
Sporttrade is the second sports betting platform to set up exchange operations in NJ since August, after Prophet Exchange. Moreover, The Garden State is the first of US states to approve sports trading, and Sporttrade has even admitted to being the first betting exchange platform of its kind to operate in the US. Having been operating ever since the 2018 PASPA repeal, the company has proven that it’s a force to be reckoned with. It has constantly sought ways to revolutionize the sports betting industry by providing unique solutions to sports betting enthusiasts.
The Sporttrade model is similar to the ones used in capital markets in so many ways. For instance, the exchange uses market makers who provide liquidity for traders on the platform. However, this approach is pretty unique, and the execution of the project has been made possible through contributions from a team of professionals with sports betting and capital markets backgrounds.
Sports Trading and How Sporttrade is Changing the Game
Betting exchanges have been around for some time in markets across the globe. But interestingly, the US has not been keen to adopt this form of sports wagering. It is most likely due to the distributed legislation landscape where each state has to pass its own laws on betting. Moreover, US sports bettors are known to prioritize user experience and not necessarily the juice that betting exchanges are often touted to offer.
Unlike traditional bookmakers, where bettors cannot change their minds mid-game, betting exchanges provide some leeway as punters can opt to trade their bets at any point during matches. That said, Sporttrade has previously stated that its approach to sports trading rides on the success of America’s day trading and stock trading, which is understandable to the average American.
Compared to the UK market, where sports trading has not kicked off as anticipated earlier, it appears that the American audience may be a bit more receptive to the concept. For the moment, Sporttrade will offer trading on various markets, including win/loss outcomes, over/under, and spreads. Additionally, the platform will provide its wagering markets on a selection of sporting events ranging from the NFL, NHL, NBA, WNBA, golf, and college football.
Expressing enthusiasm for the new venture, Sporttrade Founder and CEO Alex Kane stated:Quote
“We are thrilled to be live in the state of New Jersey with the first sports trading platform. New Jersey was the first state to launch legalized sports betting in 2018, and 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.”
Kane added that from the start, the company was determined to improve sports betting in the country, saying:Quote
“We set out to create a better and more modern sports betting platform tapping into Americans’ passion for trading. What we’ve launched is the only differentiated sports betting platform in the US, but we believe we are defining a whole new category of sports wagering - trading sports.”
The Rise of Non-Traditional Sports Betting in NJ
New Jersey has always stood out as a pioneer in several sectors that improve the state’s revenue streams. As such, it is no surprise that the state would be the first to approve sports trading exchange offerings. The New Jersey Division of Gaming Enforcement recently gave the go-ahead to three new sportsbooks, two of which focus on sports betting exchange services – Prophet Betting Exchange and Sporttrade. The approval came in August, giving the operators time to launch before the start of the 2022 NCAA and NFL seasons.
While the two betting exchanges may seem like rivals on the outside, the inner workings of their respective platforms distinguish them from one another. Prophet Exchange offers vig-free betting markets plus minimal overround and thin margins, which work well, especially if a better understands which moves to make. On the other hand, Sporttrade appeals to a specific clientele with some background in stock trading.
As Sporttrade’s CEO puts it, the concept of sports trading is becoming popular. He indicated that the model is bound to be successful as it works by “tapping into Americans’ passion for trading” and comes with some advantages over traditional sports gambling. For example, players don’t have to wait until the end of a sporting event to find out whether their bets paid off or not. Instead, they can actively transact by trading their positions throughout the game, ultimately putting them in a better position to earn more money.
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