Sporttrade announced that it is putting an end to its online sports betting operations in the US and confirmed June 26 as the closure date for its US-facing platform. This decision seems to mark a U-turn from Spottrade’s previous attempt to secure CFTC approval to offer prediction market products.
Sporttrade to Exit the US OSB Market on June 26
Sporttrade, which seemed to be bullish on its US expansion, has taken a sharp turn, announcing its decision to halt its online sports betting markets. According to the announcement, which was shared by the company on May 15, all wagering on Sporttrade will cease on May 25.
The business elaborated that players in New Jersey have until then to withdraw their funds. However, players in Arizona, Colorado, Iowa, and Virginia have until June 25 instead.
Sporttrade also confirmed June 26 as the date on which all platform access will be removed for everyone. It added that players who have failed to withdraw their money will be mailed checks to their address on file.
Sporttrade Sought Traditional Regulation
Sporttrade’s US journey so far shows that being too early can sometimes be a bad thing. The company had always pursued a prediction market-style offering. However, its launch in the US came before the advent of the CFTC-regulated prediction markets sector, causing it to seek licenses from traditional gambling operators.
When the CTFC framework became a reality, Sporttrade’s competitors were effectively allowed to operate in all 50 states, resulting in a major disadvantage for the company. Sporttrade eventually applied to the CFTC for approval, seeking to be named a designated contract market and derivatives clearing organization.
Back then, Sporttrade’s leaders emphasized that a CFTC approval would provide the company with elevated efficiency, while allowing it to continue offering its products in a safe and transparent manner.
However, the CFTC approval process proved to be timely and costly.
Prediction Markets Are a Point of Contention
In the meantime, prediction markets remain a point of contention in the US, with many traditional gambling industry regulators, stakeholders and tribal gaming entities expressing dissatisfaction with the sector’s rapid growth.
In addition to concerns about the CFTC-based framework, many have expressed concerns about potential insider trading.
