Sporttrade, the nascent company that will allow users to trade sports bets like stocks, announced Tuesday that it has gained market access in Colorado through the purchase of Momentum Sports and Entertainment, a sports betting company. That Denver-based firm owns an internet sports betting operator license through an agreement with GF gaming and its local affiliate Easy Street Casino.
In English, then: Sporttrade will be coming to Colorado sometime in the first six months of 2022.
“We are pleased to announce launch plans in Colorado, a state that has been an early believer in the growth and potential of legalized sports betting with thriving fan bases across multiple professional and college sports teams,” Alex Kane, the founder and CEO of Philadelphia-based Sporttrade, said in a statement. “Our team looks forward to expanding our presence across the U.S. while continuing to refine our sports betting exchange to provide Sporttrade’s passionate user base with a secure, transparent, and technologically advanced platform on which to wager.”
Sporttrade has plans to launch first in New Jersey sometime this year, with Colorado being next on the docket.
How exchanges work
Sports betting exchanges, long popular in Europe, have not launched in the U.S. yet, but Sporttrade plans to lead the way. A betting exchange works just like a stock exchange, with Sporttrade matching buyers and sellers, and market makers assuring a liquid market.
As a for instance: Let’s say the Denver Nuggets are 7-point favorites over the Los Angeles Clippers. The game might start with the Nuggets -7 at 50 cents, Clippers +7 at 49 cents, before the Nuggets jump out to a 35-20 lead after the first quarter. If you bought the Nuggets -7 pre-game at 50 cents, you might then be able to sell the wager for 90 cents. If you bought the Clippers at +7, however, you might be looking to limit your loss by selling your shares for less than you paid originally.
One of the benefits of this model, from a gambler’s perspective, is that the game is always tradeable, the market is always open.
“Easy Street Casino is thrilled to partner with the Sporttrade team as they make their way into the growing Colorado sports betting market,” said Roger Brown, the general manager and director of gaming operations at GF Gaming. “Together, we will pave the way for eager sports fans in Colorado to participate in a new and exciting way to wager online.”
Sporttrade’s westward expansion comes on the heels of the company raising over $36 million, which included proceeds from Jim Murren, the former CEO of MGM Resorts International, and Tom Wittman, the former CEO of NASDAQ.