Prophet Exchange is closing up its sports betting operation in New Jersey, according to reports.
The sports gambling exchange app, which allows users to set their own odds and prices for peer-to-peer betting, has halted its operations in NJ as it prepares to exit the market.
The New Jersey Division of Gaming Enforcement (NJDGE) says Prophet Exchange ceased accepting bets on May 15. Prophet Exchange customers were informed of the app’s market exit on May 31.
The skinny on Prophet Exchange exit
Customers had a designated amount of time to withdraw their funds, as mandated by state gaming regulations.
Prophet Exchange did not provide a reason for leaving the New Jersey sports betting industry. However, the platform’s mediocre performance in the Garden State is the most likely explanation. Through April, Prophet Exchange had reported less than $300,000 in total betting revenue.
The app operated in NJ under the casino license of Harrah’s Resort Atlantic City. It was the only skin attributed to the AC casino. New Jersey online sports betting regulations allow each AC casino and the state’s licensed racetracks to have up to three online sports wagering skins.
Regulators mum on NJ sports betting market departure
A NJDGE spokesperson told Legal Sports Report that operators are not obligated to provide reasons for their departure from a state. Here’s the full statement:
“The New Jersey Division of Gaming Enforcement works with the operator to ensure all funds in a patron account are paid in full to the consumer and any future bets are settled appropriately. DGE has performed these actions in past situations when operators have ceased operations in NJ.
“The process in this case requires Prophet Exchange to inform all customers of the date that it will cease operations and the procedures required by patrons to obtain deposited funds and to close out any open bets. DGE monitors the required steps to ensure conformity to their approved close out plan.”
The NJDGE spokesperson did not comment on the potential re-entry of Prophet Exchange into the market.
Not the only exchange game in town
Prophet Exchange, established in 2018 and initially licensed in the UK, distinguished itself as a platform facilitating the buying and selling of existing wagers. The app enabled peer-to-peer betting, generating revenue through a commission from winning bets, typically lower than the vig charged by traditional sportsbooks.
For instance, if two users placed opposing bets on a football match, the exchange would match them and collect a fee from the victor.
The app debuted in New Jersey in August 2022, marking its status as the inaugural legal exchange in the state and the entire US.
With the Prophet Exchange departure, Sporttrade is the lone betting exchange platform in New Jersey.
New Jersey stands alone as the sole state to have legalized the betting exchange model. Sporttrade has expanded its presence into Colorado and Iowa by offering traditional sports betting exclusively in those jurisdictions.
