Fintech sports betting company Sporttrade has gained access to the Colorado sports betting industry after acquiring Denver-based sports betting company Momentum Sports and Entertainment Inc.
Momentum owns and operates an internet sports betting operator license in the Centennial State via a market access agreement with GF Gaming and its local affiliate Easy Street Casino.
In a statement, Sporttrade founder and CEO Alex Kane said:
“We are pleased to announce launch plans in Colorado, a state that has been an early believer in the growth and potential of legalized sports betting with thriving fan bases across multiple professional and college sports teams. Our team looks forward to expanding our presence across the US while continuing to refine our sports betting exchange to provide Sporttrade’s passionate user base with a secure, transparent, and technologically advanced platform from which to wager.”
Open Market Betting Place
Founded in 2018, Sportrade allows bettors to “trade” sporting events the way they trade stocks, via its open market betting place. Under this feature, bettors are presented with tighter spreads, more liquidity, and unique options like the ability to trade in and out of bets at any time and the “always on” in-play betting.
This exchange model aims to make sports betting work like stock trading with outcome based contracts that close at $0 or $100 and the ability to buy or sell at market-based prices before and during the action.
Shaking up The Balance of Power
The state of Colorado handed out more than 30 licenses when it launched legal sports betting in 2020 and generated an estimated $1.2B in bets at the end of the year. Despite having many players, sports betting industry analysts say that 84% of the gaming revenue went to giants DraftKings and FanDuel but Sporttrade hopes that its unique approach to sports wagering will shake up the balance of power.
Sporttrade’s entry to the Colorado market comes after it announced a $36M fund raising to strengthen its position as the only sports betting exchange in the United States. Pending approvals and licensing by the New Jersey Division on Gaming Enforcement, Sporttrade will launch its iOS app in the Garden State.