Sporttrade has officially joined the Colorado sports betting market, though one feature from its app is notably missing.
The Philadelphia-based operator went fully live with CO sports betting Tuesday after receiving a license last week and a brief beta testing period. Sporttrade‘s flagship stock market-like trading platform will not be coming with it, however, as Colorado sports betting regulators are still working on rules governing those types of wagers.
Sporttrade joins more than 20 other online sportsbooks in Colorado.
Sporttrade adds 2nd state
In New Jersey, where Sporttrade has been live since last September, customers are able to set prices amongst themselves if they don’t like the house’s line on a particular bet. When users match, the company takes a 2% cut.
The Colorado sports betting law specifically allows for exchanges like Sporttrade’s, but in June the CO Limited Gaming Control Commission decided to postpone regulations for exchanges as they parse out the tax and license implications for out-of-state participation.
“I’m glad this is happening [in Colorado] because it’s bringing to light the question of what is an exchange,” said Alex Kane, Sporttrade founder and CEO. “A small handful of our wagers in New Jersey have actually been exchange wagers under the legal definition and the vast majority have actually been traditional wagers. We’re disabling the one feature in our system that enables you to choose your own price. The app will be the exact same.”
CO sports betting exchanges pending
The LGCC allowed Sporttrade to test its exchange-less product with a small group of in-state users ahead of the official launch, Kane added. He still hopes to offer the exchange in Colorado at a later date.
“By the regulations, exchange wagering is allowed, however, the director has to approve the activity and the commission has to approve entities on a single basis,” Kane said. “I think it’s possible that through our launch, we can show that exchange wagering is better for customers.”
