Sporttrade to Launch America’s First Betting Exchange in New Jersey
By Space Coast Daily // August 30, 2020
Philadelphia-based sports betting startup Sporttrade is one step closer to launching America’s first betting exchange. This follows a partnership with Twin River Worldwide Holdings, a company set to acquire Bally’s Atlantic City before receiving three betting licenses from New Jersey.
Twin River Worldwide plans to use one of its betting licenses to turn Sporttrade into America’s first regulated sports betting exchange. It will use the second skin to partner with Esports Entertainment Group and a third for its land-based sportsbook.
Through a press release, the company’s CEO George Papanier called Sporttrade “a great addition to our list of unique partnerships” and said he looked forward to working with the new New Jersey team.
What is a Sports Betting Exchange?
A betting exchange is an online platform where people can bet against one another. This is unlike a sportsbook that involves wagering against a bookmaker. Betting exchanges let their customers back or lay bets.
• Back Bet
When you back a soccer team with a bet, you essentially predict it will win the match. Betting exchanges allow you to set the odds. So, you can back $10 on Argentina to beat Mexico and put the game’s odds at 1.67.
• Lay Bet
When you lay a soccer bet, you predict a team won’t win a specific game. Let’s use Argentina and Mexico as our examples again. You would bet money that Argentina won’t defeat Mexico in a soccer match with a lay bet.
You could challenge the guy who wagered $10 on Argentina with a lay bet of odds 1.67. But for the wager to happen, you must spend an amount equal to his stake multiplied by the odds given. In other words, $10 x 1.67, which equals $16.78.
Before you get worked out on how to use a betting exchange, find out whether your state allows online sports betting. Consider checking SBO for a free tool that helps you discover the legality of online gaming by state instantly.
How to Win an Exchange Bet
Winning a back bet is simple. You get paid if you correctly predict a team to win. If you back Argentina to trump Mexico and the former win, you get paid. If they draw or lose, the money goes to the person who laid a bet against you.
People who lay bets stand to lose more if their predictions are wrong. That’s because they risk more money since they must match your odds for an exchange bet to happen.
A Brief History of Betting Exchanges
Betfair UK launched the world’s first betting exchange in 1999. It’s still the largest betting exchange in the world. In 2016, it attempted to get into the US market but later announced it would give America less priority due to strict regulations.
Sporttrade hopes to grab the substantial untapped betting market in the US with its arrival in New Jersey. It is counting on America’s love for financial trading as a sign the country could adopt a betting exchange quicker than Europe.
You see, betting exchanges aren’t very popular in the world. Their complex web interfaces put off many bettors, even in betting crazed Britain and Europe.
Most people prefer traditional betting sites. They have preset odds. They are easy to understand and don’t require third parties. Despite that, Sporttrade will be hoping Americans will be attracted by the exchange’s improved odds and peer to peer nature.
Will Sporttrade Succeed?
The world’s largest betting exchange, Betfair, hasn’t been keen on providing an exchange in the US since its arrival in 2016. Instead, it focuses on casino games and traditional sportsbooks services.
Does that mean the US isn’t prepared for a betting exchange? Sporttrade believes it has what it takes to succeed in America.
According to CEO Alexander Kane, Sporttrade will provide a “revolutionary product” to the US betting market. It will offer a first of a kind service defined by these features:
Sporttrade’s Competitive Advantage
• Lower Betting Costs
By default, betting exchanges take a small cut from every bet. Betfair charges 5% to winners of every bet. This is the cost Sporttrade aims to lower for the benefit of American punters. It could charge 3%, 2% or even 1% in the beginning and increase its fees later.
Kane plans to offer a betting platform free from rigging of any kind. This is relatively easy to achieve since Sporttrade won’t be providing the odds. Instead, punters will set the odds sans interference from the exchange.
With that in mind, Sporttrade will also follow strict rules from the New Jersey Gambling Control Board. Additionally, it will use advanced security measures and have transparent policies geared at enhancing trust with customers.
• Liquid Market
A liquid market helps bettors find punters who can lay small and large back bets instantly. For that to happen, Sporttrade must market its platform aggressively and offer exclusive bonuses to new and existing customers.
A liquid market also helps reduce risks by ensuring market positions are filled quickly. This is particularly appealing to low-limit players and professionals who prefer not to take unnecessary risks.