Sports Betting Middle Men

Everyone hopes it happens sooner than later. Legalized sports betting in the U.S. is long overdue and there are some locally who are banking on that eventuality. Start-up operations like Silver State Sports Exchange and PropSwap may just be the tip of the iceberg but they also appear to be an example of just how tough it will be to make a go of it anytime soon.

Getting started in these type of businesses is not that much of a problem if you go through the right procedures – mainly getting the OK from the Nevada Gaming Control Board. Getting things rolling after that is going to be the problem due primarily to current state and federal restrictions.

SILVER STATE SPORTS EXCHANGE:
SSSE Website

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In a nutshell, this service allows bettors to put out offers on bets they’d like to make. Only Nevada sports books can accept these offers. The books can not list offers though. It has to be – Player lists an offer followed by Sportsbook accepts offer. Not the most flexible of arrangements and it all hinges on the interest of the sports books to participate in the system. It might be worth a try but it’s asking a lot and their chances of this being embraced by Nevada bookmakers does not seem likely.

In order to get set up for this you must visit an address on the Strip and sign-up. It’s here that you also make deposits and withdrawals. Unfortunately, the info on the site leaves many unanswered questions. For inquisitive types, they have contact info and a page of house rules to get you started.
SSSE can also be contacted by e-mail at:
customerservice@silverstatesportsexchange.net

PROPSWAP:
PropSwap Website

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PropSwap bills itself as “A Stubhub for sports bets” – the first marketplace for sports bettors to buy and sell Las Vegas sports tickets. Here’s how it’s supposed to work:

Players with live sports tickets bought at Las Vegas books can bring the physical ticket into The Sporting Life Bar and submit them for listing in the PropSwap system. Once paperwork is completed you turn your ticket over to PropSwap and it gets listed on the marketplace. You control the asking price via their email system and once the ticket is bought you get paid, although that aspect of the procedure isn’t covered in the FAQs PropSwap FAQs

The consensus opinion is that there are a lot of issues with this idea, foremost is the question of whether there is really any kind of pool of potential sellers/listers to get tickets from. The operators have previously been involved in the sports book side of the business. One of the partners worked at Cantor Gaming for a stretch, so it’s even more curious how they can project any kind of regular submission of tickets, while we can’t even envision where the ticket sellers will come from.

Right now there are 75 tickets listed for sale on the PropSwap site. If they were brought in by 20 or 30 players, that would be a fantastic start. But it’s fairly obvious that’s not the case. All of the bets listed on the marketplace were purchased in the same general price range of $15-$40. The mix of tickets is such that it’s almost certainly due to seeding the site with every type of future bet someone might be looking for: season wins, Super Bowl, Conference, Division, and YES/NO Playoff odds. NCAA Conference and National Championship futures. Even NFL Season Long player props are available. These could have come from one player who decided to get involved, but they’re more likely house tickets.

There’s nothing wrong with the seeding approach. In fact, it seems like a logical way to get things started. But it doesn’t solve the problem of where tickets will come from going forward. And even if players are interested, will they go through the effort to get tickets into the system?

There’s no indication of whether or not tickets from books in Laughlin, Reno, or any other spot in the state will be accepted, but the implication is that they won’t.

My feeling is that there has to be something else to this. Of the sports bettors I ran this idea by, all were skeptical. We’ll keep tabs and report on what develops. The marketplace concept could conceivably have other applications down the road.

Booth hours at the Sporting Life Bar location are going to be primarily while NFL and NCAA games are being played. The bar itself is a great place to watch a game. The food is real good too — a level above standard tavern fare. There’s a coupon in the 2015 LVA Member Rewards book that can get you some of it for free if you play VP.

Auger Project

Want to make sports bets at as low as 1% vig? A new decentralized peer-to-peer marketplace called Auger is hoping to launch in the Fall and it’s applications for sports betting look promising. Kinda reminds us of the WSEX model. Check out the links (there’s a good video explaining it) for more info on this BitCoin currency platform.

Augur for Gambling

Auger Website

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Auger Video

Posted in SportsBook News, Uncategorized

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