If you’re asking yourself, ‘What is Sporttrade,” it’s an understandable question. The platform billing itself as, ‘Sports betting, meet stock trading,’ has yet to launch in the US. Sporttrade expects to launch in New Jersey, followed by Colorado, this year.
Louisiana and Indiana are the most recent states where Sporttrade has reached access agreements. The plan is to launch in both Louisiana and Indiana next year. Sporttrade’s access agreement in Indiana is with Caesars.
“We are incredibly humbled to be partnering with two of the most recognized Gaming leaders to bring our differentiated sports trading platform to customers in Louisiana and Indiana,” Sporttrade CEO Alex Kane said in a statement.
“Penn National and Caesars Entertainment believe in our vision of elevating the sports betting industry and see the opportunity to make sports betting more akin to capital markets and tap into (the) growth of retail stock and crypto traders, as well as attracting traditional sports bettors.”
While Sporttrade is a twist on traditional mobile sports betting, it falls under the same guidelines in the state. That means Sporttrade will only be available in the 55 parishes that have approved mobile sports betting.
How Does Sporttrade Work?
Traditional sportsbooks like DraftKings, BetMGM, Caesars, BetRivers, and FanDuel offer wagering opportunities that bettors are familiar with. Sporttrade, meanwhile, bills itself as “the first dynamic sports betting and trading exchange where you can trade sports bets like you trade stocks.”
Sporttrade says its model, based on the financial markets, brings price transparency, liquidity, and reduced transaction costs as it doesn’t charge a vig on its wagers. Instead, the site says it matches those looking to buy or sell a particular bet at the best price available.
Bettors have access to their wager at all times during the game and can trade in and out of the bet at any time. As an example, if you’re winning an NBA bet but the team’s star player is injured or gets into foul trouble, you can close the bet and take your winnings at their current market value.
In NFL terms, bettors on the Atlanta Falcons in Super Bowl 51 could have closed out their bets when they were leading 28-3 over the New England Patriots. But unless they were using a platform with a “cash-out” option, they could only watch despairingly as the New England Patriots rallied for the 34-28 win.
“The key is you have live positions that have a live value,” Kane told The Advocate. “You’re building a portfolio and checking and monitoring it live.”
If you’re active in the stock market or trade cryptocurrency, Kane told The Advocate that Sporttrade is similar to Robinhood or Coinbase. Sporttrade users are buying and selling their stake in a particular game as opposed to stocks or cryptocurrency.
Bring on the rest: What’s next for Louisiana sports betting after the Super Bowl?
What Type Of Bets Will Sporttrade Offer?
When Sporttrade launches in Louisiana, sports bettors won’t find as many types of wagers available compared to traditional sportsbooks.
Kane told The Advocate that Sporttrade will offer positions based on the line in NFL and college football games, Major League Baseball games, NBA and college basketball games, and pro golf events.
As for futures and prop bets, they’ll be available once Sporttrade builds its user base. For now, Kane told The Advocate that the narrow focus will make Sporttrade more liquid thanks to a narrow focus.
While Sporttrade may not be for all bettors, Kane sees strong growth potential.
“I think the amount wagered through our exchange will be disproportionately higher than a traditional sportsbook because you can trade in and out during a game,” Kane told The Advocate. “This will allow customers to stretch their money further.”