The average sports bettor might not realize it, but they have more options to cash out their wagers than they know. Prophet, a secondary market for sports betting, is an option for the punter who wants more liquidity. To explain how that works, our Becky Liggero was joined by Prophet co-founder Jake Benzaquen.
The average customer of sports betting sights might not be familiar with what this type of service is. “Prophet is a secondary marketplace for sportsbets, where we allow our users to buy and sell percentages of bets,” Benzaquen explains. “So the main pain point we’re addressing right now is within the cash out feature. Bookmakers allow you to cash out with your sportsbet, however they’re offering below fair market value rates, and there’s no alternative for users. So you can come to our place, customize your own liquidity and set your own rate.”
This isn’t a service that everyone will need, Benzaquen admits; they’re aiming at a specific type of user. “We’re really looking at the more educated consumer, but not the professional better,” he said. “So that person that knows they’re getting ripped off by the sportsbook, however just doesn’t have another option right now.”
For the moment, you’ll need to be based out of the U.K. to enjoy using Prophet. “We’re regulated by the UKGC (The U.K. Gaming Commission),” he explains. “American expansion and Maltese license hopefully to come very soon.”
Liggero asked Benzaquen how they are using Artificial Intelligence (AI) in their operation, as it’s become the buzz word of 2019. “A lot of what we’re using it for is to fulfill the liquidity on our marketplace,” he replied. “So we’re buyers and sellers, so if we don’t have one or the other side, we push AI forward to be able to fulfill that liquidity. And then we use that to analyze what else is happening on the market. So if other exchanges have liquidity elsewhere where we don’t, we can use that liquidity on our own marketplace, if that makes sense.”
As a newcomer to the industry, Liggero asked Benzaquen what advice he’d offer to other start-ups in the industry. “Talk to everyone,” he answered simply. “You never know where a conversation is going to get you, who you’re going to meet. And especially educate yourself on your target market, so if they’re not validating what you’re putting out there, then you got to change and iterate based on that.”