Prophet Exchange, one of the two New Jersey, is shutting its Garden State doors effective May 28.
The company, however, is not closing down. They will be “back in more states soon,” according to Jake Benzaquen, the company’s co-founder and COO.
Launched in August 2022, the company was first to market in the state for exchange betting, where bettors wager against each other rather than the house.
Prophet Exchange — much like Sporttrade, the other exchange betting site in New Jersey — takes a cut of the winnings to make their money, and that number is almost always less than the traditional vig.
Bettors are also liquid during the games, being able to “buy” and “sell” out of their positions as the game flow dictates.
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Last May, in an effort to find a wider audience, Prophet ExchangeDraftKings, and other traditional sportsbooks and bet the other side at Prophet Exchange.
“We don’t care about arbitrage,” co-founder and CEO Dean Sisun said at the time. “We don’t take any risk. If someone is trading on our exchange and laying off prices with us, it’s just volume for us. Plus, it gives us liquidity for other people to go and bet. At the end of the day, we are purely a liquidity exchange, and any sort of volume that comes in, we welcome.”
There was no immediate word from Prophet Exchange as to where it plans to open next, though Benzaquen did note the company will remain an exchange.
New Jersey is currently the only state where the exchange model is legal, though a handful of other state legislatures have bills in the pipeline concerning its future.
