Posted on: February 26, 2022, 07:45h.
Last updated on: February 26, 2022, 07:16h.
A sports betting exchange that’s ramping up to launch in US markets later this year is also looking to the future.
Sporttrade announced on Wednesday that it secured market-access agreements with Penn National Gaming for Louisiana and Caesars Entertainment in Indiana. According to the company’s release, Sporttrade expects to launch in those states – pending regulatory approval – in 2023.
The company has been in operation since 2018 and plans to unveil what it says in the first “institutional-grade” sports betting exchange in the country.
Unlike traditional sportsbooks, the Sporttrade exchange will allow bettors to place orders much like an investor buys and sells shares of stock. Its model resembles that of PredictIt, which offers an exchange for US political events.
The purpose behind it is to give bettors better control over their wagering experience. They can set orders to buy or sell based on certain prices, so they can determine how much they lose on a wager or potentially guarantee a profit.
Sporttrade Sees Potential in Indiana, Louisiana
Sporttrade said both Indiana and Louisiana give it a “strong opportunity” to get market share.
The company notes that Louisiana, where mobile sports betting launched a month ago, is expected to have an annual handle of $2.5 billion.
Indiana, which launched sports betting nearly two-and-a-half years ago, is considered one of the strongest markets in the country. Just last month, the state reported a record monthly handle of $500.1 million. For 2020, the state’s sportsbooks reported a total handle of $3.8 billion.
CEO Alex Kane said in a statement that the company is “incredibly humbled” to partner with two gaming industry giants.
Penn National and Caesars Entertainment believe in our vision of elevating the sports betting industry and see the opportunity to make sports betting more akin to capital markets and tap into growth of retail stock and crypto traders, as well as attracting traditional sports bettors,” he said.
The Philadelphia-based company is slated to debut in New Jersey later this year through a partnership with Bally’s Corp. The company also is expected to roll out an app in Colorado after the Garden State launch.
Tech Partnership Announced in December
As Sporttrade prepares for its launch, the company has announced other partnerships with companies whose technologies it will leverage to operate in select states.
One of those partnerships was announced in December with Xpoint, which will provide geolocation and compliance technology. Besides ensuring bets are placed where mobile sports betting is legal and ensuring the wagers comply with state and federal regulations, Sporttrade will also work with Xpoint to analyze customer data to better engage with users and enhance their experience with the product.
Kane said in a statement that he sees Xpoint as a kindred spirit to Sporttrade.
“We are thrilled to be partnered with another firm challenging incumbents in the sports gaming space,” he said. “As a startup, Xpoint has been truly focused on partnering with Sporttrade for the long-term success of our business by strategically aligning themselves with us.”
Previously, Sporttrade announced a partnership with Nasdaq to use the financial exchange company’s market surveillance technology.
Last June, the company reported raising $36 million in investment funding. Contributors included Nasdaq CEO Tom Wittman and former MGM Resorts International CEO and Chairman Jim Murren.