Las Vegas Startup Is Marketplace For Sportsbook Tickets
The New England Patriots and the Atlanta Falcons are set to face off in Super Bowl 51 Sunday evening.
At the beginning of the football season it looked doubtful that Atlanta would be in Houston this weekend. Atlanta hasn’t made the trip to the Superbowl since 1998 and they’ve never won.
Say you’re a diehard Falcons fan. Say you were in Las Vegas back in July and for shits and giggles decided to make a bet that the Falcons would win the Superbowl, before the season even started. At that time, chances are the odds were north of 100-1. A huge payoff should they pull off a win Sunday night.
But now the landscape has changed. There are a lot more bets on the Falcons. While your odds haven’t changed, a sports book bet on Sunday morning is going to have a lot lower odds than you’ve got in your hand.
What if you got cold feet though.
PropSwap, founded in the summer of 2015, is a Las Vegas startup ready to hedge your bets. They’ve created an online market place for sports book tickets. Now, you have a chance to make a huge profit on that 100-1 Falcons ticket, before kick off, guaranteeing you a return on your money.
“The Falcons were actually 100-to-1 or even 150-to-1 earlier in the year, so nobody really thought they would be in this position,” Pergande said. “If you got that ticket at 100-to-1 or 150-to-1 back then, you can sell that slip now for a massive profit before the game starts.”
The startup, founded by Luke Pergande and Ian Epstein, isn’t buying the sports book tickets directly from the seller, rather they have created a Craiglist like market place specifically for sports book tickets.
For sellers they go to propswap.com or use the startup’s mobile app, and fell out the selling form. Propswap then validates the ticket with the corresponding sports book. After the ticket checks out it will then be listed in the market place. From there, a buyer can buy the ticket. Perhaps they want better odds than what’s available live. The buyer pays for the ticket, Propswap takes a 10% cut and voila, the seller gets the money.
“I post a slip for sale, a buyer writes them a check, the seller is happy — they don’t have to be sweating the game Sunday, and they get a nice chunk of change,” Pergande told the Las Vegas Journal Review.
Buying tickets is just as easy. This late in the game though you would have to be in Las Vegas to put your ticket for sale. Propswap has to have possession of the ticket. They never actually take ownership of the ticket though, that’s how they stay out of trouble with the gaming commission.
The startup will also “warehouse” sports book tickets for people. If you’re only in Las Vegas once a year and you’re worried about that big game bet, then you can have Propswap hold onto your ticket. If it comes in and you win, they still take the same 10% commission, but it’s much safer then losing your ticket. Also, sportsbook tickets have an expiration date so if you can’t get back to Vegas in time to cash in, they can do it for you.
Pergande and Epstein hope that with Propswap, bettors will feel more confident making long shot bets. Then, if they lose their nerve or circumstances change they can make a profit, instead of a total loss. Hopefully this will lead to an increase in sports betting.