Sporttrade shutters betting exchange to await CFTC clearance for prediction markets
Sporttrade will shut down its U.S. sports betting exchange this week and pivot to CFTC-regulated prediction markets, removing a competitor from the landscape indefinitely. The company, founded in 2018 and backed by DCM, had offered event contracts nationwide without formal federal registration and operated a New Jersey sportsbook for nine months. Founder and CEO Kane previously acknowledged the regulatory limbo his firm operated in. The pivot positions Sporttrade to rebuild as a designated contract market and derivatives clearing organization, a process that can take months or years. ProphetX is also noted as awaiting CFTC approval to operate as a DCM.
Sporttrade's exit eliminates a direct competitor from the U.S. market while its DCM application joins the queue, extending the timeline for any CFTC-licensed challenge to Kalshi's dominance. ProphetX remains the only other known platform in that same approval pipeline.
Becomes the second major platform this week to stake its future on CFTC-regulated event contracts rather than state sports-betting licenses, alongside Kalshi's billion-dollar validation of that same regulatory path.