Posted on: August 30, 2022, 12:30h.
Last updated on: August 30, 2022, 12:21h.
The first sports betting exchange in the US launched Monday in New Jersey as Prophet Exchange officially rolled out its app to Garden State gamblers.
Former New York Giants standout Victor Cruz placed the first trades on the exchange, according to a company release. Cruz placed $100 bets on his old team getting 5.5 points in its season opener Sept. 11 against the Tennessee Titans. That was an even money bet. He also made a $100 wager through the exchange on the Giants moneyline – or straight up – getting them at +230.
In a sports betting exchange, bettors do not wager with a sportsbook. Instead, they are paired with corresponding bettors who are willing and able to take the other side of the opportunities.
Cruz, who came on as a strategic partner and advisor to company leaders last November, called Prophet Exchange an industry innovator.
“Prophet Exchange is the sports betting platform of the future,” he said. “It was great to place a bet directly with other users on the exchange without having to factor in lines that oddsmakers chose.”
For now, Prophet Exchange plans to take moneyline, spread, and totals (i.e., over-unders) on MLB, NBA, NFL, NHL, and NCAA football and basketball games. New sports and wagering opportunities will be added as the platform scales, the company’s release stated.
Plans to Go ‘Mainstream’
CEO Dean Sisun and COO Jake Benzaquen established the company four years ago in New Jersey. The company operated an exchange in Great Britain for nearly two years before surrendering its license there in April 2021 and refocusing efforts for a US launch.
Sisun and Benzaquen said they founded the company to give bettors a better marketplace for wagering. Prophet Exchange does not set lines. It only acts as a conduit between bettors, and that allows the exchange to offer better odds since they do not need to put juice on the line.
The company achieved a major goal by getting licensed in New Jersey, but Susin noted the company is focused on a more ambitious goal.
There is an overwhelming amount of emotion I feel for Prophet officially launching as the first fully regulated, peer-to-peer betting exchange in New Jersey,” Sisun said. “This has been a monumentally challenging journey to date, and to see it come to life is an amazing achievement for our team. That being said, this is only Prophet’s first major milestone, and we will not lose sight of our north star: becoming the mainstream sports betting platform in the United States.”
Because of the Wire Act, a 61-year-old federal law that prohibits he transmission of sports betting data across state lines, the exchange will only work within New Jersey. The company also has agreements in place to operate exchanges in Indiana and Ohio. Both are expected to go live in 2023, pending regulatory approval.
Company Expected Soon in New Jersey
Prophet Exchange is likely to have competition very soon in New Jersey.
Sporttrade has said it plans to launch its exchange in the state in September. Chair and CEO Alex Kane told Casino.org last month that New Jersey made sense as a first state for several reasons.
For starters, it’s one of the biggest US markets. It also is next to New York City, the financial trading hub of the US, and getting licensed by the New Jersey Division of Gaming Enforcement serves as “a great stamp of approval for other states.”