Exchange betting lets bettors trade tickets, similar to that of financial trading. The operators earns revenue through a portion of the winnings, a fee that is often lower than the typical vig charged by sportsbooks.
One such platform, Prophet Exchange, will end its tenure in New Jersey by May 28. COO Jake Benzaquen says the move marks a strategy shift and promises to be in more states soon.
Prophet Exchange lets players stay liquid by letting them buy and sell positions as the game unfolds.
The other operating exchange in the state is Sporttrade.
Last May, Prophet Exchange initiated a marketing strategy which encouraged bettors to use boosts at traditional sportsbooks and bet the other side at Prophet Exchange for guaranteed profit.
“We don’t care about arbitrage,” Dean Sisun, co-founder and CEO told Yogonet Gaming News. “We don’t take any risks. If someone is trading on our exchange and laying off prices with us, it’s just volume for us. Plus, it gives us liquidity for other people to go and bet. At the end of the day, we are purely a liquidity exchange, and any sort of volume that comes in, we welcome.”
