Sporstrade is launching a new era of sports betting and punters in New Jersey will be the first to test it out. Sporstrade, the first regulated sports gambling exchange in the US’s history, will start operating in New Jersey first before launching in other parts of the country.
According to the founder and CEO of Sporttrade, this betting exchange app is expected to be sleek, and easy to use especially by first-timers. What’s so impressive about the betting exchange app is that it will not be competing for the attention of the traditional sports bettor. Instead, Sporstrade is simply looking to enhance the traditional sports bettor’s gambling experience with a new wagering format.
Last year, Sportrade announced that it had raised funding worth $36 million from a coalition of investors that included the likes of Jim Murren, ex-CEO of MGM Resorts International, as well as Tom Wittman, ex-CEO of the Nasdaq Stock Exchange. The funding has so far been put towards customer education and acquisition, expansion into new states, as well as hiring a diverse and talented team.
So far, Sportstrade has done a great job of investing that capital into solidifying its position as the only sports betting exchange in the country. Of course, Sportstrade is not the only other sports betting exchange in the world. In fact, exchanges have been popularly used by punters in Europe for decades.
Sporstrade also secured a partnership with NASDAQ last year. This partnership is what allows Sporstrade to treat sports wagers as commodities. As a result of this partnership, Sportstrade New Jersey will have the same capabilities to monitor trading activities as one of the globe’s most popular stock exchanges.
Sportstrade also now uses this same technology that NASDAQ utilizes to avoid integrity threats. This allows punters to enjoy a seamless wagering experience without ever having to worry about data manipulation or threats of insider trading. Sporstrade launch in New Jersey marks a crucial step in elevating the already crowded sports betting market in New Jersey by offering punters yet another unique gambling experience.
What we cover
What’s the difference between sports trading and value wagering?
Sports trading can get complex, especially if you have no background in finance. The simplest explanation of what sports trading is is that it involves placing 2 wagers in the same market against each other, with the hope of making a profit. Sports trading and stock trading are very similar in that instead of purchasing and selling a company’s shares, you typically buy and sell wagers on sporting events instead.
The great thing about sports trading is that it doesn’t matter which sports team ends up winning or losing. That’s because a gambler doesn’t have to pick a winning team to walk away with profits. Stock traders do everything they can to buy low and sell high.
These principles are exactly the same when you are sports trading. Sports exchanges, therefore, operate like any financial market out there. Traders use the exchange to place wagers with one another with the exchange serving as some sort of referee. The exchange is also responsible for taking and compiling real-time information from ongoing sports events such as football matches and horse races for punters to wager on.
The exchange also makes sure that winners are paid up and that losers pay up. For providing this service, the exchange takes a small commission, typically a 2-5% cut on all winning wagers. For instance, Sportstrade makes its profits by charging a 2% commission on every winning bet; those that lose do not pay anything.
Betting exchanges such as Sportrade are getting more and more popular and it is easy to see why. When one places a wager at a traditional bookmaker, one is almost always placing a back wager. When you place a back bet, it means that you are wagering that something will take place or occur. By accepting your wager, the traditional bookmaker effectively places a lay wager in return. This means that the bookmaker is wagering against you hoping that what you have wagered on will not happen.
But betting exchanges are the opposite of traditional bookmakers in that punters are allowed to place both back, as well as lay wagers. When a punter does this multiple times, it is more likely to produce a guaranteed profit no matter which sports team wins or loses. Betting exchanges also stand out from bookmakers because they do not limit or ban winning accounts.
Additionally, punters are almost always guaranteed better prices. If you compare the odds at a traditional sportsbook to the payouts available at a betting exchange, the difference can be staggering. Although the benefits of relying on betting exchanges are clear, the big hurdle for apps like Sportrade is convincing punters to give the service a shot.
The good news is with so many gambling operators available in the market, punters are looking to diversify their experiences. As a result, peer-to-peer betting models, such as those provided by betting exchanges, have become more appealing to punters that are looking to sink their teeth into something more exciting than conventional wagers.
Sportstrade founder and CEO Alex Kane is confident that his product will appeal to all sorts of punters including those with financial backgrounds. Kane also believes that exchanges appeal to experienced punters that are in the market for a different approach to sports betting. The CEO believes that once punters recognize that the cash is right, his betting exchange will attract a whole new market.
Final Thoughts
Although betting exchanges are still relatively new in the sports betting market, they are gaining more popularity by the day. The future of these companies looks bright as more punters continue to learn about the benefits of these changes which include better odds and higher payouts.
As a result, the number of exchanges will keep growing steadily, which will only generate more interest from punters. If these exchanges continue to work towards enhancing the customer experience while also educating potential customers about how betting exchanges work, it will likely result in more players crossing over to test the waters.
