Colorado Regulators Take No Action on Sports Betting Exchange Rules
Dozens of states and the District of Colombia legalized sports wagering. Although New Jersey allows sports betting exchanges, the state does not have sports betting exchange rules.
According to pay per head sportsbook experts, the Colorado Limited Gaming Commission took no action on the proposed rules for sports betting exchanges. Also, Colorado is the first state to create regulations to oversee sports wagering exchanges.
The Gaming Commission voted 3-1 to postpone implementing new rules on sports betting exchanges. According to pay per head bookie sources, the regulator wants more time to study potential problems with tax collections.
Sports Betting Exchange Rules in Colorado
In Europe, online sports betting markets are widely available. For instance, the United Kingdom is home to several specialized sports-betting exchanges. However, the exchange market is still struggling to gain traction in the United States.
Peer-to-peer wagering is made possible through sports betting exchanges, distinguishing them from traditional sportsbooks and online sports betting sites. Exchanges do not have to worry about losing money on each wager since they do not set the lines. Exchanges only take a cut of the action in P2P wagers.
Sports bettors might benefit from using an exchange as well. In most cases, fees are less expensive on exchanges. The main reason is that intermediaries enjoy higher profits due to their lower-risk involvement. Because exchanges have nothing to gain from a wager going their way, they may offer better odds to punters, provided they can find someone to act.
New Jersey Sports Betting Exchanges
According to a political news forum, two sports betting exchanges have been granted licenses in New Jersey. Both Prophet Exchange and Sporttrade started in September of last year. Both markets would welcome the chance to grow into other territories. In fact, Prophet raised $10 million in April to further its growth objectives. However, setting up a shop in the Centennial State will have to wait for both exchanges for the time being. Therefore, Colorado’s next legal sports betting market will most likely open.
A measure to legalize sports betting exchanges was submitted in Illinois in January.
However, HB 1405 seems to be stalled in the Rules Committee. Meanwhile, exchange-based sports betting is officially permitted in Colorado. The state must wrap up the rules for its sports betting exchange. The state wants to tax exchange commissions at a rate of 10%, although there is some debate over whether or not this would be possible, given a potential loophole. Nevertheless, that does not appear to be an insurmountable obstacle.
