Smarkets to launch fixed-odds sportsbook
London-based betting exchange to test sportsbook platform ahead of potential US expansion this year
Smarkets has revealed plans to launch a fixed odds sportsbook as part of its preparations for the expansion of sports betting in the US.
Smarkets CEO and US native, Jason Trost, told Bloomberg the sportsbook would be launched in the UK in the “coming months”, ahead of a potential roll-out to the US market where legal sports betting could be worth $10-20bn annually, according to Trost.
“The main reason we’re building this is to go into the US,” the chief exec said.
He said Smarkets had invested $5m in the development of the fixed-odds sportsbook, with prices to come from the exchange side of the business rather than dedicated odds compilers.
“There’s a huge opportunity in terms of people wanting the best prices, but not wanting to go to the exchanges,” Trost said, suggesting Smarkets could offer low sportsbook margins thanks to the exchange pricing.
Smarkets has been eyeing the US for more than a year, opening an office in Los Angeles in late 2016, in the same business district as Snapchat.
The US sports betting market is expected to open up this year, with the Supreme Court potentially invalidating the federal ban on betting as soon as March.
Several firms have been positioning themselves to take advantage, including Kambi, SBTech and Scientific Games.