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Prophet Exchange, the United States’ first peer-to-peer high-frequency sports betting exchange, announced an additional line of funding of more than $10 million. Prophet Exchange was officially launched in New Jersey on August 20, 2022. The company also recently enjoyed a Super Bowl success, with over $1 million being traded.
Prophet Exchange was founded in 2018 by Jake Benzaquen and Dean Sisun. It is a peer-to-peer platform for sports betting that matches bets between users from New Jersey.
Dean Sisun, co-founder and CEO, stated, “As excited we are to enter sports betting’s emerging market, we are still a tech company.” “We are a lean, agile, and scrappy company in a sea full of giants. This allows us to react to changes quickly and seize opportunities. This funding round will allow us to continue being disruptors in betting and propel our fast-moving product forward within this growing market.
Prophet Exchange was built entirely on its proprietary technology and is well-positioned to take advantage of the rapidly evolving and expanding market for sports betting. Prophet Exchange aims to be the exchange of choice for Americans as gambling legislation is introduced across the country.
The platform provides money line, spread, and total markets for NFL and NCAA football games. It will also continue to expand as the platform grows. In the near future, soccer, tennis, golf and UFC will all be available. Users in New Jersey cannot place bets. However, anyone can download the app to view their lines and learn about peer-to-peer trading.
Prophet Exchange’s announcement that it has received $10m funding from MIXI, Inc., Ninjabet, and Chicago Trading Company in the face of difficult financial market conditions in 2023 is a validation of their peer-to-peer trading model.
Peer-to-peer trading was common in Europe, Africa, and Asia until Prophet opened its doors to the public in New Jersey in 2022.
Prophet will use this funding to focus on the future and create the most innovative product for a rapidly growing market. Prophet is aiming to achieve profitability and grow their already-industry-leading tech offerings. In the near future, additional pro-consumer pieces such as increased liquidity, growing their event roster, smart-wallet technology that allows users to trade more with less and in-play betting are all in the pipeline.
Prophet’s multi-state technology can be launched in new markets by using market access agreements and licensing fees.
Prophet’s first operation was established in the United Kingdom in 2018. It passed all required licensing and compliance abroad in order to demonstrate its concept before peer–to-peer exchanges were even being considered in the United States. After gaining the relevant experience, the team returned home in 2020 to work with New Jersey regulators to develop exchange rules and regulations in a then-sportsbook-dominated environment.
“To be honest, we have always been troubled by the notion that “the house always wins”,” Jake Benzaquen, co-founder and COO, stated. Prophet wins only when the user wins. We believe that it is time for the house and the betting exchange to lose a few more hands.
