PropSwap
| Company type | Private |
|---|---|
| Industry | Sports betting, Online marketplace |
| Founded | 2015 |
| Founder | Luke Pergande, Ian Epstein |
| Headquarters | United States |
Area served | United States (initially Nevada, expanded nationwide post-2018) |
| Products | Platform for buying and selling sports betting tickets |
PropSwap is a digital platform that facilitates the buying and selling of sports betting tickets between users.
History
The idea for PropSwap originated in October 2013 when Luke Pergande inquired with Ian Epstein about the existence of a legal marketplace for selling his Super Bowl wager. After confirming compliance with regulations from the Nevada Gaming Control Board, the service officially launched in 2015. Functioning similarly to platforms like eBay and StubHub, PropSwap generates revenue by charging commission fees to both purchasers and sellers. At first, all transactions involved physical tickets exchanged at a Las Vegas sports bar, but this process later transitioned to electronic handling.
Due to restrictions imposed by the Professional and Amateur Sports Protection Act of 1992, PropSwap initially operated solely within Nevada. However, following the 2018 Supreme Court decision that struck down PASPA, the company expanded its reach nationwide, commencing operations in Atlantic City, New Jersey that same year.
By 2019, the typical ticket sale averaged approximately $250. Some significant transactions included a $10,000 wager on Lamar Jackson securing the Heisman Trophy in 2016 and a $57,000 ticket forecasting the New Orleans Saints as winners of Super Bowl LIII in 2019.
In October 2019, PropSwap introduced an upgraded platform design, which contributed to substantial growth in both revenue and user base throughout 2020. Amid the COVID-19 pandemic, the company refunded commission fees and encouraged sellers to return profits following cancellations of events such as the NCAA Tournament.
PropSwap secured $2 million in funding during 2021, bringing its total capital raised to $5 million by October 2022.