The ability for bettors to sell their online sports bets with PropSwap is one step closer following a new partnership announced Tuesday.
PropSwap is partnering with SB22, a Belgrade-based technology company that is building a sportsbook platform designed for the US market.
SB22 plans to go live with its first mobile sports betting clients after the Super Bowl, Chief Commercial Officer Vik Shrestha told Legal Sports Report.
What is PropSwap?
PropSwap is an online marketplace where sports bettors can list their tickets to sell. Buyers can come in and place a bid for the ticket or buy it outright.
For example, say a bettor wagers on an NFL team to win the Super Bowl at 100/1. After a hot start, the team drops to 25/1. To hedge, the seller could sell the ticket to the new buyer at a price no longer available at sportsbooks.
The company only accepts tickets from regulated US sportsbooks, though it cannot sell tickets from Illinois or Nevada.
PropSwap gets its cut two ways: sellers pay a 10% commission and there is a deposit fee of 3%.
Wire Act concerns for PropSwap?
Anyone familiar with US sports betting knows about the Wire Act, which prevents interstate sports betting. PropSwap co-founder Luke Pergande told LSR he does not believe the company is violating the Wire Act:
“The Wire Act prohibits live wagers (primary) from crossing state borders. PropSwap is not in the primary market of sports betting. We operate a secondary market, where existing wagers are sold as property from [one] individual to another.”
The company has sold tickets across state borders for more than four years, he added.
Shrestha: Potential clients ‘very interested’ in partnership
Shrestha could not name any potential partners due to standard confidentiality agreements, but some are definitely interested in the marketplace integration, he said.
“The PropSwap partnership announcement just came out a couple days ago and some of the potential clients we are in discussions with reacted in a very positive way and are very interested to learn more about the PropSwap solution.”
SB22 finalizing product
SB22’s Fi Platform received its GLI certification earlier this month. The company is building out its operations and service team for those first clients to launch, Shrestha said.
The team is also building out more advanced aspects of its player account management (PAM) platform like personalized promos and retention offers.
SB22 will start building retail betting and iGaming capabilities next year, he added.