- Sporttrade is a hybrid of the stock market and sports betting.
- The platform will allow users to buy and sell their stake in a team or player at any point during a sporting event rather than having to hang on to a bet like they normally would with sportsbooks.
- The new platform in sports wagering will be testing its application in New Jersey this summer and if it does well, more states will be seeing it in the future.
NEW YORK – A new era in sports betting is coming this summer to the people of New Jersey and that era begins and ends with Sporttrade.
The startup tech company out of Philadelphia intends to integrate sports betting into a stock trading format. After receiving enough funding from backers of the idea, the platform hopes to roll out and test the sports trading waters in the Garden State.
This idea for a new form of regulated sports betting could either be hit or miss, much like wagers themselves, so it’s in the proper company.
What Is A Sports Betting Stock Exchange?
Alex Kane created Sporttrade after seeing how much the odds of a bet fluctuate throughout a sporting event. He realized that gamblers could capitalize on the wager if they were able to sell it when the matchup was at a high point should they choose to, much like stocks.
When he noticed that sports bettors were locked into their wagers for the duration of the game, he decided it would be more beneficial to have the option of a buyout if they thought their team or athlete peaked and things would only go downhill from there.
“I realized, ‘Oh, my gosh, this structure stinks,’” said Kane. “It should be way more like capital markets trading, where like I’m able to pick up Robinhood or Coinbase and trade based on the changes in the market.”
The platform for trading would be like that of mobile sportsbooks.
But how does it all work? Going into a game, like the Atlanta Hawks and Milwaukee Bucks NBA Playoffs game, for instance, the Hawks could have a buy-in or “share price” of $100. If they were to score more points and overshadow the Bucks, that price could go up to $200.
Anyone with a share could then choose to sell and take away a $100 profit or they could hold onto it for the long haul.
What’s To Come
Sporttrade has secured over $36 million in funding from companies like Impression Ventures, Hudson River Trading, and Tower Research Venture, among other businesses the platform publicized on Monday.
This money will go toward further expanding the company into more regulated sports gaming states outside of just New Jersey, adding employees, and hopefully branching into retail sports betting venues instead of being a strictly digital application.
“We fundamentally believe that what we are building is so much closer to options trading or futures trading than traditional sports betting and casinos,” said Kane.
This type of wagering will be put into percentages rather than odds and gives the gambler control over how the bet pans out for them.
Sporttrade is the future of sports betting and the people of New Jersey are the first to get to try it this summer. Should it do well, the sky is the limit for this new market that could very well change the game when gambling on sports nationwide.
Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.