Explaining Prophet Exchange: A Different Way to Bet on Sports

In one state at least, a betting exchange is causing some bettors to rethink the way they bet on sports. New Jersey is the only state to offer Prophet Exchange, an exciting new way to bet on sports that eliminates the need for a sportsbook.

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What was the first transaction in human history? A warm animal skin for a piece of fruit? A sharp cutting stone for a colorful set of beads? Fire for a handful of beans? Who knows. But we know that it almost certainly didn’t involve a middleman who got his cut of the deal.

Do you know the exhilaration you feel when you find a bargain at a yard sale? That VHS tape of season three of Third Rock From The Sun isn’t going to find itself. It’s fun and economical to find good deals like that.

That’s what a betting exchange like Prophet Exchange does: it matches people who want to place a bet peer-to-peer without the typical fees associated with “retail sportsbook activity.”

Prophet Exchange Explained

While NJ sportsbook apps are free to download, and you can register and start placing bets with as little as $5 in your account, we know there’s a fee in there somewhere, am I right?

With a traditional sports betting operator like an online app or a retail sportsbook, the “house” takes its cut. That fee isn’t listed on your betting slip, but it’s there, baked into the odds like cheese in your grandma’s lasagna.

Odds at a traditional sportsbook must include an edge so the sportsbook itself can make some money. That’s called the vig, and it’s why bets are often listed at -110 instead of +100 because that extra $10 on either side serves as the sportsbook fee.

When you add up those fees, you start to see some of your betting money (win or lose) be siphoned off to the sportsbook.

Prophet Exchange is happy to proclaim the financial perks of using its platform for NFL betting:

A bettor that placed their moneyline wagers with Prophet Exchange made over $300 more over the first 3 weeks of the NFL season than betting on a sportsbook!

A recent example showed that for the Cowboys at Giants game in Week 3, traditional sportsbooks listed the odds at +100 for Dallas and -120 Giants. With Prophet Exchange the moneyline odds were +110 (Cowboys) and -111 (Giants). The difference comes out to a 4.4% lower price to the customer via Prophet Exchange.

More Gambling News: New Jersey Prepares to Sign Up for Another Decade of Online Gambling

Top 5 Questions About Prophet Exchange

What is Prophet Exchange?

Prophet Exchange is a peer-to-peer betting exchange. That means there is no middleman who takes out a fee for accepting your wager. Traditional sportsbook apps like DraftKings, FanDuel, and others, all bake in a fee for facilitating wagers. That fee also called the “vig” (short for vigorish) is typically between 5-10%. That means on bets that would typically be “even” odds, you’ll need to wager more to potentially win because the sportsbook needs to charge you to make money.

At Prophet Exchange and other betting exchanges, the platform is simply matching two parties who agree to take the opposite sides of a wager. Prophet Exchange does not profit based on whether you win or lose your bet.

Is Prophet Exchange legal?

The betting exchange known as Prophet Exchange is available in New Jersey. The company has plans to expand to Indiana in 2023, and will likely debut in other legal jurisdictions soon after. In September, Ohio announced that it had given conditional approval for Prophet Exchange to operate in that state in 2023 when it launches.

Prophet Exchange has gained access to markets in two states; New Jersey and Indiana, via an agreement with Caesars Entertainment. Therefore, Prophet Exchange has established that it’s a legitimate and safe app to use for sports betting, for those seeking a new way to place wagers.

What is a sports betting exchange?

A sports betting exchange is a marketplace where bettors can match themselves with others who wish to place bets on athletic competitions without dealing through a sportsbook. Customers of an exchange like Prophet Exchange can accept one side of bet offers in the exchange, or propose wagers with odds at a price of their choosing. If another exchange member takes your proposed bet, you have been matched. When you win or lose, Prophet Exchange simply serves to enable the secure completion of your wager.

What if my proposed bet doesn’t find a match?

If no one accepts your proposed wager at the price you offered, you have a few choices: you can adjust your odds and bet details, or you can scratch the betting slip and cancel the offer. Prophet Exchange refunds any transaction fees for bets that are not matched. You never pay if your bet is not accepted.

Is there a catch to a betting exchange? Is there a hidden fee?

There are no hidden fees with Prophet Exchange, and yes a peer-to-peer sports betting marketplace is safe and secure. Prophet Exchange can be downloaded for free (or you can join via a web browser on your desktop/laptop). When you place a wager, no vig or “house fee” is added to your bet. You are betting against another person.

Prophet Exchange makes money on small transaction fees. A tiny amount is charged when you deposit, withdraw, or place a wager. There is no fee based on how much you wager or win, it comes down to a simple fee for each transaction that is much less than it costs to place sports bets on traditional sportsbooks.

About the Author

Dan Holmes

Dan Holmes is a writer and contributor for NJ Gambling Sites and has been blogging for more than 25 years. He covered Major League Baseball for MLB.com, wrote for MiLB.com, and spent eight years as Web Manager at the National Baseball Hall of Fame in Cooperstown, NY. He is the author of three books on baseball, and his writing has appeared in Huffington Post, Baseball Digest, and the Detroit Free Press. He has a degree from Medill School of Journalism in Evanston, Illinois.