PropSwap Takes Big Step, Will Soon Allow Mobile Bettors to Sell Prop Bets
Photo by Alan Crowhurst/Getty Images.
In 2015, two entrepreneurs dreamed up a business whereby sports bettors could cash out their live future bets by selling them to others.
Over the years, the company, PropSwap, has had some big wins, including a bettor who sold his $8,000 bet on the Saints in 2019 to win the Super Bowl for $57,000. The team, which had gone 13-3 that year, famously lost in the NFC Championship Game to the Los Angeles Rams.
But as legalized betting has swept across the country, there was always the elephant in the room: How limited is the business without being able to do this with mobile betting, as some markets have seen more than 90 percent of all bets come in that way?
In a partnership with sports betting platform SB22, PropSwap is now offering sportsbooks a path to offer bettors the ability to post their live mobile tickets within the betting app they use.
In this new world, a bettor would be able to go into their active bets and, instead of looking at a cashout offered by the book, would be able to type in a price that he or she would be willing to sell the bet for. That bet, with the price, would then sync to PropSwap.
If a deal were done, the bet would show up as settled, and the account balance of the original bettor would be updated to reflect the funds from the sale.
"We've been asked about allowing bettors to cash out of bets since we started," said PropSwap co-founder Luke Pergande. "It's now here, thanks to the economic downturn, which has turned operators priorities from acquiring customers to retaining them."
Sportsbook operators have offered cash outs on big futures bets with long odds, but to the chagrin of some bettors, those cashouts aren't mirrored in the actual odds. The book takes its share — so what's in it for the sportsbook to allow PropSwap to come in?
Pergande said that the average PropSwap bet is sold 2.2 times and some bets have been sold as much as eight times. "They'll get a negotiated piece of the action every time it sells," he said. There are no details yet on what sportsbooks will embrace the option.
The mobile betting piece is a huge boost to PropSwap's potential, making nine times the amount of bets available just by virtue of paper to mobile betting trends. The news has caused the company, who has raised $5 million to date, to begin fundraising again.
Pergande wouldn't say exactly how much the raise was, or what the valuation would be, but did say that it was the innovation that investors had hoped for.