PropSwap Garners $2 Million From Investors for Betting Ticket Marketplace

By James White Sunday, March 14, 2021

As online gambling and sports betting continue to become legalized in new states across the US, gambling businesses, entrepreneurs, and startup companies are taking the opportunity to disrupt the market with novel ways for users to buy and sell bets. Startup business PropSwap raised $2 million in new capital from investors in the latest funding round for the company.

"This new investment allows us to move quicker than ever before, a critical attribute in the rapidly expanding sports betting industry," said Luke Pergande, co-founder of PropSwap. “Our platform is best in-class for the two massive upcoming sporting events: March Madness, and The Masters."

The latest round of funding for the sports betting ecommerce startup featured participation from Fama Ventures, Eilers & Krejcik Gaming partner Chris Grove, Freestar founder David Freedman, and more. As of the latest fundraising round, the startup has amassed over $4 million in support of its company.

Person using a computer for sports betting.

A New Kind of Ecommerce Marketplace

Founded by Pergande and Ian Epstein in 2015, the ecommerce startup company functions as a digital marketplace for buying and selling active bets on sporting events. It’s similar to eBay, but it’s for selling and buying sports wagers rather than books or electronics.

Users in possession of a bet obtained from a legal sportsbook can put their ticket up for sale on the PropSwap marketplace. Interested buyers will find the listing displaying the odds, potential payout, and price set by the owner. Sellers using the service provided by the ecommerce business also have the option of opening up their ticket to bidding, rather than just a fixed price.

This new type of peer-to-peer ticket transaction opens up a number of profitable opportunities for bettors. Users may choose to sell longshot bets for a profit on the platform built by the startup company as the odds of winning improve during the season. Rather than hedging their bets, users can simply sell the valuable ticket for a guaranteed profit (from which the ecommerce business takes 10% commission).

"We see our customers making bets knowing the team or player no longer needs to win,” Pergande said. “This is a completely different way to bet on sports.”

Betting on a Profitable Industry

The ecommerce startup company is tapping into a rapidly expanding market. Draftkings, a leading online sports betting business, is witnessing a massive growth. On Wednesday, boasting a $23.67 billion market cap, the sports betting company saw its stock price reach $69.29 per share — up over 11% from its previous close. PropSwap is not only betting on the popularity of wagering on sports for its business model, but also providing bettors with unique opportunities to turn a profit.

About the Author

Headshot of James White

James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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