Sporttrade Inc. Seeks to Revolutionize Sports Betting & Raises $36M in Funding
Sporttrade is seeking to perfect a new sports betting platform, one that allows users much more flexibility in their wagers. With Sporttrade, your wagers are similar to stocks or options. While you can hold on to them and cash out if your wager wins, you can also buy and trade wagers as they go up or down in value.
Sporttrade, which is based out of Philadelphia, Pennsylvania, recently raised $36 million in funding. This was fantastic news for the size of the company, and some heavy hitters decided to back Sporttrade. Some of the investors included Jump Capital, Hudson River Trading, Impression Ventures, and Tower Research Ventures. There were also two former CEOs who invested. Those would be former MGM Resorts International CEO, Jim Murren, and former CEO of the Nasdaq Stock Exchange, Tim Wittman.
Being able to buy and sell wagers like a stock is something a lot of people have craved in the industry and the idea has been attempted by some smaller companies. BettorEdge, a company out of Minnesota, had a similar idea in terms of sports betting. However, while BettorEdge somewhat simulates an options trade with a position being created and a user having to buy the other end of that trade, you cannot sell positions whenever you please.
It seems that Sporttrade is going to let you trade out or into positions of the wager whenever you want. This is going to be key if this kind of sports betting model is to work. People want to be able to switch positions on the fly when they choose, and it will keep bettors involved.
Sporttrade also advertises on their website that you will have a portfolio similar to a brokerage account that will show you the value of your wagers in real-time. Then, you can trade those wagers off or let them close and see if you are in the money, i.e., have won the bet.
The app looks to launch in New Jersey first, sometime late in the year. Unlike some other attempts at launching sports betting apps with trading involved, Sporttrade will only be launching in legalized and regulated sports betting markets.
United States Sports Betting Market
Sporttrade is entering a market that, while still in its infancy, is becoming more and more saturated. It seems that every month there is a new online sports betting platform being launched in the United States. While the big American brands are now well established in BetMGM, DraftKings, FanDuel, BetRivers, Bally’s, Barstool, and WynnBet, we are also seeing European and international brands stepping into the United States. Bet365, Unibet, PointsBet, William Hill (now owned by Caesars), and Betway are all brands now operating in at least one state.
With all of this competition, smaller sports betting brands have to come up with a unique system to drive a userbase. Sporttrade may have that with their trading system. Being able to trade out of your bets, and do so at a market value, not just what the house deems profitable, will be a huge reason to try out the platform.