WagerWire calms secondary market concerns after Nevada rejects PropSwap proposal
Sports betting marketplace platform moves to ease concerns after the Nevada Gaming Control Board rejected PropSwap's betting ticket exchange in the state
WagerWire has addressed concerns after Nevada regulators quashed the idea of betting ticket reselling in the state any time soon.
The Los Angeles-based group has made clear that though the firm has not yet expanded to Nevada, any plans to do so have not been derailed by the recent update from the Nevada Gaming Control Board (NGCB).
Last Thursday, 23 May, the NGCB rejected PropSwap’s proposal that operators should be permitted to facilitate the trading of sports bets through the mail.
The update comes three years after PropSwap was outlawed in the state after the NGCB deemed its model illegal due to the lack of a gaming license.
In response, PropSwap raised the idea of a new “betting ticket resale service provider” category, with operators that fell into that category not required to possess a gaming license to run an online sports betting ticket exchange service.
It was an idea that was swiftly turned down by the NGCB, with multiple concerns raised, including interstate activity between bettors in Nevada mailing tickets to bettors in other states, while there were also lingering question marks over revenue and tax treatment for both the companies and individual bettors involved.
However, WagerWire has said the NGCB’s ruling has not ended hopes for secondary markets in Nevada entirely.
A key difference between PropSwap and WagerWire is that the latter’s premise is that bettors can buy and sell placed sports bets through its partner sportsbook apps, rather than through the mail.
The company’s update read: “We want to take the time to issue a clarification on the recent news about secondary markets in Nevada involving PropSwap. Some headlines have insinuated that Nevada regulators have ‘shot down’ sports-betting-ticket resale operators. To be clear, they have not.”
The statement goes on to address the fact that the NGCB’s decision was in direct response to paper tickets, before adding: “In summary, this was not an indictment on secondary markets as a whole.
“WagerWire was specifically designed to address the concerns of paper ticket trading by partnering and integrating directly with licensed sportsbook operators and platform providers to perform real-time trading of online/mobile bets.”
WagerWire has insisted that because of that aforementioned direct integration, the know your customer and anti-money laundering compliance requirements raised are already in place.
The marketplace added: “WagerWire is excited to be a part of the solution and looks forward to seeing this new and engaging form of sports betting proliferate across the country and in Nevada.”
Kirk Hendrick, chair of the NGCB, made clear that there is a chance PropSwap’s proposal is reviewed again in the future, refusing to rule out the idea of betting ticket exchange markets for good.
He explained: “I’m a big believer in new concepts and entrepreneurship…but I have a number of concerns about this activity in Nevada. Is this something the Nevada gaming industry needs and customers in Nevada need and want?
“This is a good draft of what could happen, and I would say in the future it may be looked at again, but from where I sit today, I’m not in favor of recommending it to the commission.”
Currently, PropSwap operates in 38 states, boasting a unique wagering license in a number of those states.
WagerWire is currently partnered with the likes of FanDuel, BetMGM, Caesars, and PrizePicks. The group secured $3m in a funding round in 2022 that included Betr CEO Joey Levy and Roger Ehrenberg.