Sporttrade, which as a sports betting exchange basically introduced the prediction market product to the regulated sports betting market in America, is shuttering its betting exchange in order to — presumably — launch a prediction market.
Kafka would be proud.
The announcement was made via X late Friday afternoon, with the firm’s official account noting the closure.
Sporttrade customers in New Jersey — where the company first launched — have until May 25 to withdraw their funds, as the site will go dark that day. Customers in Arizona, Colorado, Iowa, and Virginia have until June 25, with the sites shuttering the following day.
For customers who take no action and have funds in their account, checks will be mailed.
But just because this sports betting window is closing does not mean Sporttrade is leaving the world behind, as the tweet notes people should, “stay tuned for what’s next!”
And what’s next certainly appears to be an entry into the prediction market space.
Long time coming
Back in April 2025, Sporttrade CEO Alex Kane petitioned the Commodity Futures Trading Commission for “no-action relief” that would have allowed the company to operate its sports event contracts nationwide without formal federal registration.
At the time, Kane was clear-eyed about what his company actually was, telling Sportico, “You’re not going to hear me say this isn’t sports betting. That’s a ridiculous comment.” That, of course, put him at odds with every prediction market operator, which claim they are not providing sports betting but instead offering “sports event contracts.” This position is currently being litigated in courts across the country, including in New Jersey.
Sporttrade eventually abandoned the no-action route, instead submitting an application early this year to become a designated contract market, or DCM, the same federal status held by operators such as market leader Kalshi.
Kane has long contended the state-by-state sportsbook licensing system is a poor fit for low-margin exchange businesses, with taxes and regulatory overhead making profitability nearly impossible.
The DCM application — which also includes a bid to become a designated clearing organization — is the company’s path to the nationwide reach Kane has been chasing for years.
Historically, DCM applications have taken years to clear, but recent approvals have come faster (XChange Alpha got the nod in just over 200 days), suggesting Sporttrade may not be sitting in regulatory limbo for long, which could explain the timing of Friday’s announcement.
A message sent by InGame to Kane was not returned as of publication time.
