Prophet Exchange to shut down New Jersey operations

Prophet Exchange to shut down New Jersey operations
Image: Shutterstock

Sportsbook exchange Prophet Exchange will end its operations in New Jersey as of May 28 but intends to continue in other states, according to the company’s co-founder and COO.

Jake Benzaquen told Sports Handle that the company will be “back in more states soon.” Although New Jersey is the only state that legally allows exchanges right now, others have proposed legislation in the works with a view to allowing the model. Colorado also recently approved regulations to allow exchange wagering.

Prophet Exchange launched in August 2022 as the first regulated sports betting exchange. It is currently one of two sportsbook exchanges live in the Garden State after Sporttrade subsequently went live in the state in September 2022.

In New Jersey, Prophet Exchange has partnered with the likes of US Integrity, now rebranded as Integrity Compliance 360, who have provided their betting integrity monitoring services to Prophet Exchange to proactively identify irregular patterns. Seven months ago, Prophet Exchange also united with GeoComply to become the first operator to leverage the firm’s KYC authentication solution.

New Jersey’s recent state revenue reports provide an insight into how Prophet Exchange has fared in the province. The state’s most recent financials show that the company took a shade over $244,0090 in gross revenue from online sports betting in April 2024 through its partnership with Harrah’s Atlantic City. That was up from $81,000 in February.

Year-to-date GGR stands at around $291,000.

Prophet Exchange to look for other opportunities

It has a footprint in other states, too, such as Ohio. There, it launched its peer-to-peer betting services after the state went live with sports betting last year. It is partnered with the Columbus Blue Jackets NHL franchise in the Buckeye State.

“Although commonplace in markets like the UK, exchange betting is a brand new concept in the United States and our expansion is another big step in our mission to become the mainstream sports betting platform in the country,” said co-founder and CEO Dean Sisun at the time the company was preparing for its Ohio launch.

It’s uncertain where Prophet Exchange will look next for expansion. Benzaquen stressed the company will remain an exchange.

Sportsbook exchanges allow users to bet against one another rather than against a sportsbook itself. Companies like Prophet Exchange act as an intermediary, allowing users to set prices or wager on prices already set by other users. The exchanges take a cut of any winnings. Prophet Exchange offers moneyline, spread, and total markets for sports including NFL, NBA, NHL, MLB, and NCAA football and basketball games.