Sporttrade Lands Colorado License
Posted on: August 28, 2023, 01:16h.
Last updated on: August 29, 2023, 11:49h.
Sports betting exchange operator Sporttrade last week received a temporary sports betting internet operator permit from the Colorado Limited Gaming Control Commission (CLGCC). That paves the way for the company to offer its exchange services in the state.
Colorado joins New Jersey as the states in which Philadelphia-based Sporttrade is operational. The privately held company said it will have details on its Colorado launch date in the weeks ahead. Founded in 2018 by Alex Kane, Sporttrade also has market access agreements in Indiana and Louisiana, and hopes to launch in more states in the future.
Sporttrade utilizes proven exchange technology and processes and applies them to sports betting, aimed at enhancing and democratizing the entire industry,” according to the operator. “Sporttrade allows participants to trade sporting events like they trade stocks, drastically improving the customer experience by building a fairer, more efficient, and engaging customer experience.”
The company’s Colorado launch was partly facilitated by its 2021 acquisition of Momentum Sports and Entertainment Inc. Bally’s is Sporttrade’s gaming partner in New Jersey.
How Sporttrade Separates Itself
In terms of handle, New Jersey is one of the largest sports wagering markets in the U.S., while Colorado is one of the fastest-growing.
That says Sporttrade has two feathers in its cap by being operational in those states. Still, sports wagering in those jurisdictions is dominated by traditional sportsbook operators such as FanDuel, DraftKings, and BetMGM, indicating upstarts such as Sporttrade need to do something to set themselves apart from entrenched rivals.
Perhaps more than any other company in the regulated sports wagering space, Sporttrade has proven adept at differentiating itself from competitors.
“Built just like a financial exchange, our platform allows customers to trade on sports outcomes by buying and selling contracts, just like trading stocks,” the company noted on its website.
By using that methodology rather than the traditional manner of sports betting, Sporttrade enables users to buy and sell contracts on sporting events like an investor buys and sells stocks. That allows users to cut losses and recoup some capital on losing wagers, something that’s impossible in standard sports betting.
Bright Future for Exchange Betting
Exchange betting is still in its infancy. But the future could be bright for operators such as Sporttrade, pending wider regulatory acceptance.
Should that acceptance build, more event-driven market participants, including some hedge funds, could be compelled to use the Sporttrade platform.
As things stand today, the upstart company has a partnership with Nasdaq and the backing of some well-known investors, including former MGM Resorts International CEO Jim Murren. Other Sporttrade investors include Jump Capital, Delavan Lake Investments, Impression Ventures, Hudson River Trading, and Tower Research Ventures.
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