One of New Jersey’s sportsbook exchanges, Prophet Exchange, is set to cease its operations in the state. According to the announcement, the exchange will officially close on May 28.
For context, Prophet Exchange originally launched in New Jersey in August 2022. Prophet was notably the state’s first provider of exchange betting, a form of betting where fans bet against one another instead of against the house.
To make it operations sustainable Prophet takes a small cut of player’s winnings. This figure is always lower than the cut of traditional sportsbooks, which is a large part of betting exchanges’ appeal.
Prophet’s exit from the New Jersey market means that Sporttrade will remain as the state’s sole sports betting exchange.
Prophet Will Remain an Exchange
As reported by Sports Handle, the company’s founder and chief operating officer, Jake Benzaquen, said that this closure doesn’t mean the end of Prophet. According to him, the shutdown of its Garden State operations is but a temporary setback.
Benzaquen promised that Prophet Exchange will be “back in more states soon.” However, Prophet Exchange did not immediately confirm its plans for the future. However, Benzaquen confirmed that the company plans to continue operating as an exchange.
This might present certain difficulties to Prophet, which is exploring options in other states because the majority of US jurisdictions currently do not allow betting exchanges. However, Prophet remains optimistic that regulatory changes would pave the way to the exchange’s launch in new markets.
In the meantime, competitor Sporttrade recently launched in Colorado, expanding its geographical footprint. This launch allowed players in the Centennial State to try out the company’s exceptional and differentiated sports betting products.