Prophet Exchange to Close New Jersey Operations
Sports betting exchange Prophet Exchange has announced that it will be exiting the New Jersey market at the end of the month (May 28).
In August 2022, Prophet Exchange became the first sports betting exchange to launch in the United States.
LISTEN TO THIS ARTICLE:While Prophet Exchange didn’t state the specific reasons for its imminent withdrawal from the market, it confirmed that it’s not shutting down entirely, as it will debut in additional states soon.
Prophet Exchange became the first regulated sports betting exchange in the US when it launched in New Jersey in August 2022. It currently operates alongside Sporttrade, which debuted in September 2022, making them the only two sportsbook exchanges active in the state, contributing to the growth of online gambling NJ.
Brand Awareness Drive and Partnerships
Since its launch, Prophet Exchange has partnered with various entities to aid its operations in New Jersey, including a betting integrity monitoring deal with US Integrity, now rebranded as Integrity Compliance 360. Several months ago, the platform also joined forces with GeoComply, becoming the first operator to utilize the company’s KYC authentication solution.
In May 2023, Prophet Exchange launched an innovative program to expand its customer base. In this program, bettors were encouraged to use boosts offered by FanDuel, DraftKings, and other traditional sportsbooks and hedge their bets by wagering on the opposite outcome on its platform for guaranteed earnings.
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According to New Jersey’s April 2024 revenue data, Prophet Exchange generated $244,009 in gross revenue from online sports betting in the month via its partnership with Harrah’s Atlantic City.
Although Prophet Exchange operates its sports betting exchange only in New Jersey, it is also present in some other jurisdictions. In Ohio, the company runs peer-to-peer betting services and is partnered with NHL franchise Columbus Blue Jackets.
New Concept in the US
Although popular in the UK, exchange betting is quite an emerging concept in the United States. Currently, New Jersey is the only state that permits sports betting exchanges in the US. However, other jurisdictions are actively considering the option, including Colorado, where lawmakers recently approved regulations to legalize exchange wagering.
Sports betting exchanges, like Prophet Exchange and Sporttrade, work by enabling users to wager against each other instead of against a traditional sportsbook. Acting as intermediaries, the exchanges allow users to set their own prices or bet on prices established by others, while they earn a commission on winning bets.
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