Sporttrade Deal Could Bring 1st Sports Betting Exchange To NJ
A Philadelphia-based sports betting startup company has reached an agreement to enter the New Jersey market and says it will be launching a sports betting exchange product.
Sporttrade has entered into a multi-year deal with Twin River Worldwide Holdings, according to a news release on Tuesday. Twin River is finalizing the purchase of Bally’s Atlantic City Hotel & Casino from Caesars Entertainment as part of the Caesars-Eldorado merger. The sale is pending approval from New Jersey regulators.
When the sale is complete, Twin River acquires three sports betting skins. It announced last week a partnership agreement with Esports Entertainment Group for one of the sports betting skins. It also announced a deal on Aug. 6 with PointsBet for an iGaming skin.
"We are thrilled to partner with Twin River as we prepare to introduce a truly differentiated product to the New Jersey market," Alexander Kane, founder and CEO of Sporttrade, said in the news release. "By applying capital markets technology and market structure to the US sports betting ecosystem, we are creating something revolutionary.”
New Jersey sportsbooks saw a better July handle this year than they did in July 2019. It was up 25.4% year over year.
What is Exchange Betting?
Sporttrade says it will bring a different type of sports betting to New Jersey with exchange betting. The company said in the release it will be the first betting exchange in the U.S.
Betting exchanges are popular is Europe with companies like Betfair and Smarkets. A betting exchange allows bettors to trade the outcome of events and differs from a traditional sportsbook because bettors can wager against each other, rather than against the sportsbook.
The bettor can either “back” that an outcome will occur, like a win, or “lay” against it, meaning the outcome won’t happen. Theoretically, the player can receive more competitive odds through an exchange.
“Sporttrade will establish a first-of-its-kind sports betting venue that will be fair, liquid, and transparent, and we look forward to offering customers innovative betting products at significantly lower costs than traditional sportsbooks," Kane said.
Twin River Active in New Jersey
Twin River is based in Lincoln, Rhode Island, where it owns and manages the two casinos in the state. It also owns three casinos in Colorado, two in Mississippi and one each in Delaware and Missouri.
In April, Twin River reached an agreement to buy Bally’s from Caesars Entertainment, as well as Eldorado Resorts properties in Louisiana and Nevada. Caesars and Eldorado sold the properties as part of the recently completed merger.
In advance of the Bally’s acquisition being approved by the state, Twin River is getting its skins in place and it is giving less-established companies opportunities. A week ago, a skin deal was announced with Esports Entertainment Group, which is based in Malta and is a licensed online gambling company with a focus on eSports wagering and 18+ gaming.
Esports Entertainment offers fixed-odds wagering, fantasy sports and pools on various eSports events.
Earlier in August, Twin River and PointsBet announced an iGaming partnership.
"Sporttrade will be a great addition to our list of unique partnerships we are building in the Atlantic City market," George Papanier, president and CEO of Twin River, said in the news release. "They will bring a new, exciting online product offering for our guests and we look forward to having them join our Atlantic City team."
Be first to get our exclusive sports offers!
Join today to stay up to date on your states gambling news and offers.