Sports Betting Exchange Firm Sporttrade Raises $36M in Funding

Spread the Word:

Sporttrade, a company poised to become the first sports betting exchange in the US, has announced it has raised $36 million in funding.

The Philadelphia-based fintech said in Tuesday’s release said the coalition of investors includes both the financial and gaming industry. They include lead investor Jump Capital, Impression Ventures, Tower Research Ventures, Hudson River Trading, Jim Murren, former CEO of MGM Resorts International, and Tom Wittman, who had worked as CEO of the Nasdaq Stock Exchange.

Additionally, Sporttrade issued convertible debt to Nasdaq Ventures with regard to the transaction. Funding will go to customer acquisition, expansion into more states, and continued investment in a diverse and talented team, the news release said.

Elevation of the Sports Betting Industry

Founder and CEO of Sporttrade Alex Kane said the company’s mission is to uplift the sports betting industry by applying capital markets principles and technology and to place the customer at the forefront.

The 27-year-old took to Twitter to share to mark a “significant broadening” of Sporttrade’s collation to achieve the mission.

Sporttrade’s iOS app is expected to launch in New Jersey during the second half of 2021, subject to regulatory approval.

The Only Sports Betting Exchange in the US?

Sporttrade plans to use the capital to bolster its position as the only sports betting exchange in the United States. The company’s sports betting enterprise is based on the principles of a stock market in which participants buy and sell their shares in an event with sellers and buyers being match by the operator.

However, Sporttrade’s “bets” are not banked by the sportsbook – which usually happens in traditional sports betting.

Jump Capital’s Partner Yelena Shkolnik said she’s excited to back Alex and the team at Sporttrade as they have built a retail trading solution for wagering, reflecting pricing based on win probabilities and allowing consumers to easily trade in and out of any position. “The US bettor will finally have a transparent open market of sports betting wagers to trade… “

A Revolutionary Approach

The news release further said the innovative approach will revolutionize US gaming by following the playbook of the nation’s capital markets and democratize the customer experience through a “secure and technologically advanced platform.”

Delavan Lake Investments also participated in the funding round. Its co-founder David Frohardt-Lane praised Alex, who “had the vision to transform the existing sports betting model and leverage the benefits of stock market investing for the recreational sports trader.”

Founded in 2018, Sportrade has gained a sudden boom in financing with the multi-million dollars being injected from a coalition of investors from the gaming as well as financial sectors.

But There Are Challenges…

According to the release, the company’s open betting marketplace enables the participants to trade sporting events the same way they trade stocks, with more liquidity, tighter spreads, and novel features like “always on’ in-playing trading, while allowing to trade in and out of bets at any time.

This type of trading would be new for the US, though it has been part of the betting landscape in other countries. Among other challenges, Sporttrade will have to bear the additional burden of educating US bettors about their concept, besides competing with the traditional mobile sportsbooks attracting more and more customers through aggressive promotional benefits.

As of now, Sporttrade is eying the New Jersey sports betting market. The company entered into a deal with Twin River Worldwide Holdings in August to enter the Garden State.

Related News

November 30, 2023

North Carolina Sports Betting Won’t Be Ready for Super Bowl 2024, Regulators Confirm

The upcoming North Carolina sports betting market is facing further delays, state regulators confirmed this week. Legal wagering will not be available in time for Super Bowl LVIII, which is […]

November 30, 2023

Ohio Senator Wants Sports Betting Tax Cut after Hike Six Months Ago

Ohio State Senator Niraj Antani has introduced a new bill, SB 190, aiming to slash the tax rate on Ohio sports betting operations. The proposal comes months after lawmakers passed […]

November 23, 2023

Missouri Sports Betting Bills Heading for Referendum, Proposals Backed by Sports Teams

Missouri Secretary of State John Ashcroft signed off on a series of proposed sports betting bills this week, marking a crucial step in the journey to a regulated Missouri sports […]

November 22, 2023

Las Vegas Grand Prix Betting Breaks Records at MGM, Caesars

The recent high octane spectacle of the Las Vegas Grand Prix was, as expected, a record-breaking weekend for Nevada retail sportsbooks, say operators. The long-awaited race weekend got off to […]

Stay Ahead of the Game

Are you ready to take your online gambling experience to the next level? Sign up for the LetsGambleUSA newsletter and get the latest news, exclusive offers, and expert tips delivered straight to your inbox.