Sporttrade has secured a sports betting license in Virginia. It marks the fifth U.S. market of the company. Sporttrade plans to officially launch operations in the state next month. This is despite of approval arriving on the eve of the NFL season.
Virginia is a key sports betting market because of its proximity to Washington, D.C., as well as home major league teams. It ranked ninth nationally with a betting handle of $415,4 million last June. This outpaces neighboring North Carolina by $15 million.
Sporttrade believes it will benefit from a second-mover advantage in Virginia. It enters the market after competitors like WynnBET, Unibet, SI Sportsbook, and Betway shuttered operations in the state. The decision of the company to expand into Virginia was based on an analysis of factors. This includes the market size, licensing costs, and revenue-sharing expenses.
Alex Kane, Sporttrade’s CEO, told Action Network that Virginia is just a no-brainer state for them. He noted that the state ranks highly on the Sporttrade Economic Rating of the company. It even outperforms states such as Massachusetts and Ohio, which normally generate larger betting handles.
By offering a stock market-style approach to sports betting, Sporttrade differentiates itself from traditional sportsbooks. This model enables users to trade in and out of their positions similarly to trading securities, offering bettors increased flexibility.
Newcomers like Sporttrade will benefit from a recently passed amendment in Virginia. Recently, sportsbooks could deduct all bonuses and promotions for tax purposes. However, the new rule limits such deductions to first 12 months of operation of a company. According to Kane, established players will see their tax rates increase by about 40% after this week. This includes FanDuel, DraftKings, and BetMGM, as well as Betr, a newer entrant.
Sporttrade targets to offer more favorable pricing than traditional sportsbooks in a competitive move. For example, in a previous NFL matchup, Sporttrade offered a better price on the Eagles at -135, compared to -140 at other major sportsbooks.
