A different way to bet on sporting events is now a reality for the US online gambling industry. Sporttrade, which offers an online sports betting exchange to its users, has taken its platform live in New Jersey as of Thursday, Sept. 15.
It’s the first and currently only such market legally available in the United States. Whether or not bettors will find its unique approach superior to traditional forms of New Jersey sports betting will depend on several factors.
US online gambling gets first sports betting exchange
According to a Thursday press release, Sporttrade is now available for eligible bettors in the Garden State. Sporttrade has been offering its sports betting exchange in European markets like the United Kingdom from 2018 through the present.
An exchange for sports betting is similar to an exchange for any other commodity. The commodities in this instance are wagers on sports themselves. According to the release, Sporttrade’s initial market in NJ will consist of positions on:
The platform presents the probability of the individual wagers paying off in a percentage form. Among the available sports on the exchange are:
Sporttrade’s release says it has agreements to launch its platform in Colorado, Indiana, and Louisiana. It plans to make Colorado its next destination, going live sometime in 2023. For most bettors, the real question is whether an exchange is a better play.
Could an exchange be a better use of bettors’ bankrolls?
It’s a simple question with a short but complex answer; it depends. Like traditional sports bets, the only way to make money is to make accurate predictions about how sporting events will proceed. There is a possible advantage to this kind of model in terms of limiting liabilities.
Because you can trade out of positions like you would sell stock in a company on the NASDAQ exchange, bettors can somewhat limit their losses if they see things going south. To be clear, you’ll likely still take a loss in that instance.
If you’re a casual player in this market, you’ll have to deal with large volume buyers who buy up huge swaths of the best positions early. In that way, they influence the market so that the price you will pay for a share in a wager will be greater. Thus, even if the wager you buy into does pay out, your winnings won’t represent as good as a return on your investment.
The bottom line is that there is risk associated with a sports betting exchange just like any other stock market or sports bet. In a way, this model adds to the risk. To play the market successfully, you’ll not only need to handicap the bets you want to buy into but also monitor the market conditions as well.
If the price of a position you like is too great, you risk a meager return even if your handicapping is solid. For all these reasons, it’s best to approach this like you would any other sports betting platform, as a form of entertainment you can blow some of your expendable income on. Within those parameters, Sporttrade can be a great way to diversify your plays.