How Betting On Sports And Trading Stocks Could Merge In 2020

• Tradesports, a sports-betting exchange platform, will begin its beta testing phase this week.
• The testing phase will use three separate NFL games where people will be able to try out this new form of wagering on the games for free.
• With the popularity of sports betting in the United States, Tradesports is expected to do well.

NEW YORK – With no-fee stock trading apps and sports betting apps in the US gaining popularity in recent years, there could be a product in 2020 that merges both.

Bernstein, a founder of Intrade, a market for predicting political events founded six years ago, wants to create a sports betting exchange. The exchange which has been named Tradesports will begin beta-testing its product this week.

During this phase, it will be free to play for all of those taking part in it. If the company receives a positive response, they predict they could be a fully licensed business offered in multiple states in 2020.

“Sports betting is broadening the field of interest,” said Chris Grove, a partner at Eilers & Krejcik. It is this interest that makes it seem like a good time to launch Tradesports for beta testing. This could expand the sports betting market to grow further and produce even more of a revenue stream.

Should every state make sports betting a legal hobby, it is projected that it would be a $17 billion business by research company Eilers & Krejcik Gaming.  In the United States alone.

What Is Tradesports?

Tradesports combines both stock strategy with a sports betting strategy to make up its own entity. It allows gamblers to trade on games through their sports wagering choices. Bets are no longer bets but deals between two people.

It may sound confusing but a good example would be rather than betting on an NFL team to cover the spread at a sportsbook, bettors purchase that specific “bet” from a trader that is offering it. Should the team cover the spread, shares also known as money will be made on the deal. If the team fails to meet the contract requirements, there will be no monetary gain.

Like the stock market, Tradesports allows the owners of contracts to sell them at any point during the game. That’s where the whole idea of selling high and buying low that is instilled in everyone working for Wall Street comes into play.

If a particular team is doing extremely well, unloading the “stock” on them may be the best bet for higher net profits for the sports bettor. Anyone familiar with how stock exchanges work will be able to pick up on how this new way of sports betting works.

While it takes a bit more strategy to figure out the structure, the amount of money taken by Tradesports is lower than that of placing wagers at a traditional sportsbook. Those sports betting parlors can hold around 7% of the total money bet on a game, while this form of wagering on sporting events takes about 3-4% off of the winners cut.

Is The US Ready For A Sports-Betting Exchange?

This is not the first time that Bernstein has tried to introduce this form of sports betting to the world. Originally, it was first tried out in Ireland beginning in 2004. However, it was a flop due to the ban on sports wagering in the United States at the time and their company Intrade being comprised of mostly American members.

But, with the U.S. market growing, Bernstein is optimistic that this will be a very popular form of sports betting nationwide.

“We have really good evidence that this is popular,” said Bernstein. “And we think this is much better circumstances than 15 years ago.”

Now that sports betting has been legalized in nineteen states and more states are currently aiming to make it legal, the circumstances are much better this time around.

Europe has a similar sports-betting exchange known as Betfair but if Tradesports can become licensed, they will be the first of its kind in the United States. With the wagering of sports now being a legal pastime in many states, this new form of the market could very well take off.

Should it have positive results, it will need to be structured to fit each individual state’s laws on sports betting. There will not be any crossover between states wanting to sell their contracts because of the different laws each state has in place. With this latest development, next year could see the introduction of a legal sports-betting exchange in the U.S.

News tags: Betfair | Chris Grove | Eilers and Krejcik Gaming | Intrade | Ron Bernstein | Tradesports | Wall Street