- Sporttrade could go public for sports bettors as early as 2021.
- Their product melds stocks and sports betting into a new entity of wagering for sports bettors.
NEW YORK - Sporttrade could be the first sports betting exchange in the United States if all of their efforts go smoothly to make the leap into this new industry.
The startup company centered on sports wagering and based out of Philadelphia just sealed a multiyear deal with Twin River Worldwide Holdings, Inc (TRWH) in order to be able to roll out their gaming product in the state of New Jersey.
Before being able to do so, TRWH must receive the mandatory approvals regarding regulations for their acquisition of Bally’s Atlantic City Hotel and Casino.
Once that’s been done, they will gain three licenses for internet and mobile sports betting in the Garden State and at that time, Sporttrade will finally be able to launch their sports wagering platform with the deal they just made through TRWH.
"We are thrilled to partner with Twin River as we prepare to introduce a truly differentiated product to the New Jersey market," said Alexander Kane, Founder and CEO of Sporttrade. "By applying capital markets technology and market structure to the US sports betting ecosystem, we are creating something revolutionary. Sporttrade will establish a first-of-its-kind sports betting venue that will be fair, liquid, and transparent, and we look forward to offering customers innovative betting products at significantly lower costs than traditional sportsbooks."
How Does Sporttrade Work?
Sporttrade is a company that combines both sports and the stock market into one USA online gambling game. Other parts of the world have tried this concept and it hasn’t fared as well, accounting for only 7% of all sports style betting.
However, insiders believe that because the United States, home of Wall Street, has such an understanding and love of the stock market and trading that the industry will do well with American sports bettors and stock traders alike.
Each sports season brings new types of shares for members of Sporttrade. All major league and collegiate teams are given 100,000 shares each that can be purchased by the public. If a certain team is out of shares, interested buyers have to wait until someone unloads them to the broker at Sporttrade which is the platform where all exchanges must occur.
Changes in the price of “stock” for each team will go up and down based on team performance and any action occurring within the organization. Holders can sell at any time during the season as they would with a normal stock.
At the end of the season, holders will receive money for the stocks in the teams they have in their possession as Sporttrade buys them back. The person who ends up with the highest payout at the end of the season is eligible for prizes as long as they held the stock for at least two-thirds of that season.
In The End
Sporttrade is hoping to launch by 2021. At the end of the day, it’s playing stocks based on sports teams rather than companies. It’s betting on a team and how well they will do while still being a stock that can be sold at any given time rather than a win/lose at the end of an event style wager. These “bets” can be held onto all season long for those that want to ride it out.
TRWH is excited to be able to offer this to their customers once the New Jersey Bally’s transaction is complete. And with any luck, this may be the first company to offer a sports betting stock exchange in the United States which would make history.
"Sporttrade will be a great addition to our list of unique partnerships we are building in the Atlantic City market" says George Papanier, President and CEO of Twin River Worldwide Holdings. "They will bring a new, exciting online product offering for our guests and we look forward to having them join our Atlantic City team."