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Prophet Exchange Closing, at Least for Now

Kelly Irvin

Updated on June 27, 2024 at 1:21 PM EDT • Read time: 1 min 25 sec. Find more information on Twitter and Google News.

New Jersey Devils center Jack Hughes celebrates his goal against the Winnipeg Jets during the third period at Prudential Center as we look at Prophet Exchange leaving New Jersey.
New Jersey Devils center Jack Hughes celebrates his goal against the Winnipeg Jets during the third period at Prudential Center. Photo by Ed Mulholland/USA TODAY Sports.

Prophet Exchange is currently undergoing a transition as it has recently become the first peer-to-peer legal sports betting exchange in the United States. This marks a significant shift in the competitive landscape for sportsbooks.

The company made its debut in the New Jersey sports betting market in August 2022, but has since been forced to temporarily close its operations.

A recent discussion on X site outlines the cause, and while specifics are not clear, the company suggests that a comeback is on the horizon.

The company stated that the regulated environment, designed primarily for the benefit of sportsbooks, is not favorable for a consumer-friendly betting platform. They believe that the regulated environment is aimed at causing users to lose, and will take action against those who consistently win by either banning or limiting them.

Quick rise of a unique approach

Prophet Exchange’s goal is to prioritize the needs of consumers and provide a unique option for those seeking an alternative to the top sports betting platforms.

The platform allows users to establish betting prices for others to wager on daily. It quickly gained popularity, with Super Bowl LVII attracting $1 million in wagers through one of the latest betting sites at the time. In April 2023, the startup also received $10 million in funding.

The strategy is widely used in Europe but has not gained widespread acceptance in North America, possibly because of the challenges outlined by the company in an industry dominated by giants like FanDuel and DraftKings. Prophet Exchange was one of only two similar operations in New Jersey, where sportsbooks offer promotions for New Jersey sports betting.

Harsh words

Prophet Exchange is currently not available on New Jersey sports betting apps, but the company assures customers that its absence is only temporary.

“We are committed to ensuring a fair betting environment and are excited to announce our new product, which will be accessible to a larger audience,” the company stated on its X thread.

It is uncertain if Prophet Exchange can make a comeback as a strong competitor against the top sports betting apps. However, the model has garnered interest from users, as the company reported $200 million in trades on the platform and claims to profit only when users win.

Nevertheless, the challenge in restarting lies in the limited availability of exchange options. While the United Kingdom offers numerous paths to success, currently only New Jersey allows this format, with the possibility of similar bills being introduced in other states in the future.

Written By:
Kelly Irvin
Kelly Irvin has been in the sports media wilderness since 2009, and he joined Underscoreg Review in 2021. His work has been referenced in The New York Times and Forbes. He’s also made appearances on The Fan 590 and TSN 1050. Sean is a regular bettor who places bets daily while using a handful of books. Most frequently, he uses FanDuel and bet365 due to the quality experience on those apps. While he’ll often take an analytical approach, Sean enjoys the fun, recreational side of betting too, and embraces alternative markets on events like the Westminster Dog Show or Eurovision, or the many novelty props tied annually to the Super Bowl, for example. Beyond sports, Sean is also interested in the betting markets tied to politics, and especially those connected to American elections. He sees betting as a way to explore and engage in a deeper way, and takes that same view to his work. He plays poker periodically too, and is an avid fantasy sports player. Sean also previously spent time with Bleacher Report and theScore, all after earning his media studies degree from the University of Guelph-Humber.