Prophet Exchange, the first-ever fully regulated, high-frequency sports betting exchange in the United States, has recently secured a new funding line of over $10 million.
The announcement follows the company’s official launch in August 2022 and a highly successful Super Bowl, during which over $1 million worth of trades were made on the platform.
This fresh injection of funds will enable Prophet Exchange to expand and enhance its offerings, as well as improve its market position in the highly competitive sports betting industry.
Prophet Exchange was founded by Dean Sisun and Jake Benzaquen in 2018, with the aim of providing a fully peer-to-peer sports betting platform that allows users to match their potential bets with others across New Jersey.
One of the key advantages of a betting exchange is that each user stands to win more or lose less on every bet, with no limits on the amount of money they can wager. Users can also trade in and out of positions on tight margins, and make offers on outcomes at their desired prices, much like a financial exchange.
The platform currently offers money line, spread, and total markets for NFL, NBA, NHL, MLB, and NCAA football and basketball games. As the platform continues to grow, it will add new sports and markets, including soccer, tennis, golf, UFC, and other Tier 2 sports.
“As excited as we are to enter the emerging market of sports betting, we are a tech company at heart,” said Dean Sisun, CEO and co-founder. “We are a scrappy, lean and agile firm in a sea of behemoths, which allows us to respond to changes and capitalize on opportunities at a moment’s notice. This round of funding will let us continue as disruptors in the betting space and push our fast-moving product forward in this blossoming market.”
Until 2022, peer-to-peer exchanges were a rarity in the U.S., with their prevalence largely limited to Europe and other regions. However, this changed when Prophet Exchange opened its doors in New Jersey, becoming the first of its kind in the country.
Unlike traditional sportsbook operators that charge a significant vigorish (or tax) on every bet, Prophet offers a user-friendly system where bettors compete directly with each other. Successful bets are rewarded, and losses do not translate to a win for the platform.
