PropSwap Error Leads to a Bad Marketing Tactic

• X user @thecat123454 has been owed $12,000 from PropSwap for almost two months.
• PropSwap took to X and stated they would be paying the bettor the full amount after making a “silly request” to try and get more users.
• They remain confident in their 0.0002% fraud rate and are looking at this as an honest mistake by the seller.

LAS VEGAS – The online ticket exchange company, PropSwap, is under fire for their now-deleted tweet that said, “PropSwap will come out of pocket with $6,000 today, immediately paid to @thecat123454. If everyone comes together who said they’d never use PropSwap, and we can find 1,200 new users in the next 24 hours, we’ll fully reimburse @thecat123454 no questions asked with $12,561.”

PropSwap acts as an online ticket exchange between gamblers. Based in Las Vegas, this company allows customers to post and purchase betting tickets, offering a cash-out to the seller and a live bet to the buyer. While PropSwap is used to seek better odds than those that are found at legal online sportsbooks, the possibility of fraud is always a risk.

X user @thecat123454 purchased a $5,400 Eagles Super Bowl Ticket on December 20, 2024. The bet was listed to pay $38,292 if the Eagles were victorious. They won the title of Super Bowl LIX champions, yet @thecat123454 wrote, “I have had good experiences with @PropSwap in the past but unfortunately for this ticket, I have been owed $12,581 for coming up on two months.”

It was then explained by PropSwap that “Cat” did not receive the full payout due to a tax-related error listed on the payout. PropSwap made a statement that said, “The bet had original odds of > 300/1, so therefore it had Federal Taxes and State Taxes withheld. The seller was paid $25,711 by Caesars Palace. He sent those funds to us, of which we sent directly to The Cat123454. The seller did indeed incorrectly list the ticket for a pre-tax amount, not the past-tax amount.”

After X user, “Cat”, tweeted that the seller no longer wanted to pay the full amount of $38,292 after the ticket won because of the tax confusion and PropSwap was not going to make up the difference, people were outraged by the alleged fraudulent activity that had occurred. To rectify the situation, PropSwap used it as a marketing tactic to get more users, and they would pay @thecat123454 the full amount only if 1,200 new users signed up. The tweet has since been deleted, as it was a bad marketing tactic that did not sit well with current PropSwap users.

Since taking that tweet down, PropSwap made another statement on X, apologizing for their “silly request” and stating that they would be paying @thecat123454 the full ticket amount won along with a Bonus for “being such a great sport about this.” The company continues to stand by its 0.0002% fraud rate and encourages its users to check the seller’s reputation.

Legal sports betting always has its risks, but it can also have its rewards. The “Cat” was caught in an unfortunate situation, and PropSwap did not know how to go about addressing the issue. It could have been handled completely offline, and the gambling exchange could have avoided the marketing ploy that turned into a public relations crisis.

News tags: Las Vegas | Nevada | Philadelphia Eagles | PropSwap | Super Bowl | thecat123454