Prophet Exchange, an app that lets bettors set their own odds and prices against each other, has stopped taking bets as it prepares to exit the NJ sports betting market.
According to the New Jersey Division of Gaming Enforcement, Prophet Exchange stopped taking bets on May 15 and notified customers of its formal exit from New Jersey sports betting on May 31. In the meantime, users have until May 28 to withdraw funds, according to the regulator.
Representatives with Prophet Exchange did not respond to a request for comment.
NJ sports betting regulator monitoring process
Sports betting exchanges do not need to explain why they might exit a state, according to an NJDE spokesperson.
“The New Jersey Division of Gaming Enforcement (DGE) 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,” a DGE spokesperson said in an email. “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 spokesperson declined to comment on the exchange’s potential return to the market.
One exchange remains
Prophet was founded in 2018 and initially licensed in the UK, and branded itself as a place to buy and sell existing wagers. Those apps facilitate peer-to-peer bets, making money by taking a commission from the winnings that is typically less than the vig at traditional sportsbooks. For example, if two bettors place opposing bets on a football game, the exchange pairs them and collects a fee from the winner.
The app first launched in the New Jersey sports betting market in August 2022, when it became the first legal exchange in the state and the US. Sporttrade, which launched a month after, survives it as the sole remaining exchange.
New Jersey is the only state to have legalized the betting exchange model. Sporttrade is also live in in Colorado and Iowa, though only offering traditional sports betting in those states.
