The launch of the first sports betting exchange in the US may be coming closer. On Monday, New Jersey-based Prophet announced it secured an agreement with Caesars Entertainment to serve as a mobile betting skin for the gaming giant in New Jersey and Indiana.
In a release touting the multi-year deal, Prophet said it plans to launch in New Jersey later this year to take advantage of the college and pro football seasons. The Indiana rollout is slated for some time next year, with the potential for additional unnamed states coming after that.
Founders Dean Sisun, Prophet’s CEO, and Jake Benzaquen, its COO, created the company three years ago and set up an exchange in Great Britain. The company now is bringing its team and technology to the States
Sisun said in a statement that the simplicity of Prophet’s platform will help it stand out.
We are for the customers who want the best experience and prices on the market,” he said. “Our customers will have the luxury of placing bets on spreads and total markets at even (+100) odds, not being limited on any action, and also have the ability to create their own odds on markets offered.”
Prophet will be available on iOS and Android devices, the website betprophet.co, and its public API. The API access, the release stated, is for bettors who wish to trade more quickly and make bulk transactions.
According to the UK Gambling Commission, Prophet was suspended temporarily in April 2020 for not fully integrating GAMSTOP into its application.
GAMSTOP is an online self-exclusion tool for bettors in Britain. In January 2020, the UKGC notified all online licensees that they must have the tool available for bettors on their app or site by March 31.
Prophet was one of two operators suspended, according to an April 3, 2020, release.
The UKGC lifted the suspension four days later.
A search of the UKGC database shows that Stake Trade Inc., which had the license for BetProphet.co in Britain, was active from May 10, 2019, to April 14 of this year. The license is listed as surrendered. A company spokesperson confirmed to Casino.org that action was taken to focus on the upcoming US launch.
Sports betting exchanges in the US have been a topic of discussion in the gaming industry even before the Supreme Court threw out the Professional and Amateur Sports Protection Act (PASPA) of 1992. That gave states the ability to legalize and regulate sports wagering.
The main concern about such exchanges is that they would have to function exclusively within states. While online poker apps can take advantage of shared liquidity agreements between states – where they’re signed and approved – to allow players to play in interstate games, sports betting is hamstrung by the Wire Act. That’s the 60-year-old law that prohibits the use of wired communication devices to transmit sports betting information across state lines.
Still, that has not deterred all from developing exchanges in hopes of getting them in US markets.
ZenSports has secured more than $3.8 million in funding in the last year to help with the development of its peer-to-peer sports betting app. The company has agreements in place to operate in Nevada and Colorado through access agreements. In addition, it has filed for licenses in Tennessee and Virginia.
Like Prophet, Sporttrade is preparing for a launch in New Jersey later this year. Last month, the company announced it raised $36 million from a group of investors. Sporttrade has a market-access agreement with Bally Sports.