A growing legal sports betting market is preparing to launch its first wagering exchange.
STX — a technology company that offers real-time trading markets for sports betting — is planning its launch in Ontario, which authorized online betting sites and iGaming in April 2022. STX’s highly-anticipated debut in the Canadian market comes after the company received licensing and approval from the Alcohol and Gaming Commission of Ontario. The province marks the first jurisdiction in which STX has been awarded a license to offer its product.
Get ready Ontario! https://t.co/W2CYLSyp74— STX (@stx_app) April 20, 2023
“The focus at STX is not only on bringing a new demographic of day trader into the world of sports betting, but also providing a better experience for every potential customer from recreational to professional,” STX founder Justin Deutsch told Canadian Gaming Business.
STX takes a different approach to wagering compared to traditional online and retail sportsbooks. The exchange allows users to determine the odds of a betting market by placing orders via its app. Users can then complete trades once both buyer and seller agree on their pricing. STX offers its services 24 hours a day and seven days a week allowing users to take advantage of markets no matter the game or season. STX also has the capability to facilitate a traditional online sportsbook. It plans to launch its first all-in-one platform in North America.
In preparation for its launch, STX secured a partnership with the U.S. Integrity monitoring service, which will provide services for the betting exchange using its proprietary dashboard. Earlier this year, U.S. Integrity was integral to a probe into Alabama college baseball games. Its partnership with STX will ensure that users have a transparent and safe experience on the app.
STX adds to a growing list of betting exchanges that are solidifying their footprints via sports.
In April, Prophet Exchange — the first licensed peer-to-peer sports betting exchange in America — raised more than $10 million in funding. The round included the Chicago Trading Company, Ninja Bet, and Japanese social networking service MIXI. Prophet Exchange, which currently has market access in New Jersey, will use the fresh capital to expand its offerings and its territory.
Betting exchanges could also be coming to Illinois after House Bill 1405 was introduced in January. The bill proposes an amendment that would authorize “exchange trade wagering.”
If passed, HB 1405 would permit the Illinois Gaming Board to award up to two exchange trade wagering licenses. In March, the bill was re-referred to the state’s Rules Committee for further consideration.