Sporttrade: Complete Guide
A peer-to-peer sports betting exchange with no vig, 2% commission on net winnings (you only pay when you profit), and a pending CFTC DCM application that could reshape its regulatory future.
Regulation
State licenses; DCM pending
States available
5 states
Fee
2% on net winnings
Fee model
No vig — exchange commission only
Founded
2018
Headquarters
Philadelphia, PA
Our Take
Sporttrade is the exchange model applied to sports betting — no vig, peer-to-peer matching, 2% on net winnings. For winning sports bettors in its 5 available states, it's likely the cheapest venue for game-level event trading. The CFTC DCM application is the pivotal next move: if approved, Sporttrade becomes a federally regulated exchange competing directly with Kalshi for sports markets. Currently limited to 5 states and sports only.
Key Strengths
Best effective pricing in sports markets
No vig means you get true market odds. A 2% commission on net winnings is typically better than a traditional sportsbook's 4-6% effective margin, especially for favorites. In plain English: Sporttrade takes 2 cents from every dollar of profit — if you bet $100 and win $50 in profit, the fee is $1. If you lose, you pay nothing in fees.
True exchange model
Sporttrade matches user orders peer-to-peer — no house book, no market maker. You're trading against other bettors, not against Sporttrade's risk team.
CFTC DCM application in progress
Application published to CFTC docket in February 2026. If approved, Sporttrade gains federal exchange status and could expand to 40+ states.
Philadelphia sports market expertise
Founded by sports finance professionals — the product design reflects deep sports market structure knowledge, not just a financial exchange retrofitted for sports.
Key Considerations
Only 5 states
State gaming licenses limit Sporttrade to AZ, CO, IA, NJ, VA. ~45 states are unavailable until (if) CFTC approval comes through.
Not federally regulated yet
Currently operates under state gaming law, not CFTC oversight. This creates regulatory uncertainty compared to Kalshi (CFTC DCM since 2020). CFTC application is pending.
Sports only
No politics, economics, entertainment, or weather markets. Sporttrade is a pure sports platform. Users who want non-sports prediction markets must go elsewhere.
Liquidity concentration
As a smaller platform, order book depth may be thinner on less popular markets or games. Peer-to-peer models need sufficient volume to match orders efficiently.
Compare Platforms
See how Sporttrade stacks up
The Exchange Model: Why It's Different
Core Mechanics
Sporttrade operates as a peer-to-peer exchange — the same fundamental model as stock exchanges, not sportsbooks. For background on how event contracts work, see how prediction markets work.
❌ Traditional Sportsbook
- • You bet against the house
- • House builds 4–6% profit into every line
- • Both sides of a $100 bet net the book ~$4–6
- • Book limits sharp players
- • Pricing reflects risk management, not markets
✅ Sporttrade Exchange
- • You bet against other users
- • Sporttrade takes 2% of net winnings only
- • True market odds driven by user supply/demand
- • No user limits — platform benefits from volume
- • Pricing reflects actual market consensus
In plain English: You only pay if you win. Sporttrade takes 2 cents from every dollar of profit. If you bet $100 and win $50 in profit, Sporttrade takes $1. If you lose, you pay nothing in fees.
Fee Comparison Example: $100 bet on a 55% favorite — or see the full fee comparison table
Traditional Book
Buy at -125 (55.6¢ implied)
Win: $80 on $100 stake
Effective vig: ~5%
Sporttrade
True 55¢ contract ($100)
Win: $81.82 × 98% = ~$80.18
Effective cost: ~2%
Kalshi
55¢ contract, qty 182
Fee: 7% × .55 × .45 × 182 ≈ $3.15
Effective cost: ~1.7%
Illustrative example only. Actual costs depend on position size, odds, and current fee schedules. Verify at official platform sites before trading.
In plain English: Sporttrade's 2% fee means you keep 98 cents of every dollar you win. On a $100 bet that wins $50 in profit, you'd pay about $1 in fees. If you lose the bet, you owe Sporttrade nothing extra.
State Availability
Geographic Access
AZ
Available
CO
Available
IA
Available
NJ
Available
VA
Available
State-licensed: 5 states only
Sporttrade operates under state gaming licenses — not federal CFTC oversight. This limits availability to 5 states. CFTC DCM approval (application pending) could expand this to 40+ states.
Regulatory Status & CFTC Application
Legal Framework
Track the latest on Sporttrade's application in our regulatory tracker.
Sporttrade holds state gaming licenses in AZ, CO, IA, NJ, and VA. These are the same regulatory frameworks used by DraftKings and FanDuel for sports betting.
Sporttrade filed for CFTC Designated Contract Market and Derivatives Clearing Organization status. Application published to public docket in February 2026. Review timeline is uncertain — could take 6–18 months or longer.
What CFTC approval would mean:
Expand from 5 states to 40+
Federal CFTC jurisdiction overrides most state gaming restrictions — Kalshi's model works in 45+ states.
Become a federally regulated exchange
DCM status means CFTC oversight, customer fund segregation requirements, and federal legal protection similar to Kalshi.
List non-sports markets
A DCM can list any CFTC-approved event contract — potentially opening politics, economics, and other categories.
Competitive threat to Kalshi in sports
As a DCM with sports exchange DNA, Sporttrade would compete directly with Kalshi for sports market volume.
Market Categories
Available Markets
Sporttrade is sports-only — no politics, economics, or entertainment markets currently offered.
NFL
Game moneylines, spreads, totals — peer-to-peer matching
NBA
Regular season and playoff game outcomes
MLB
Game-level and series markets
NHL
Game outcomes and series contracts
Politics / Economics
Not available — sports only
Entertainment / Culture
Not available — sports only
Sporttrade vs Kalshi vs Underdog
Competitive Analysis
| Feature | Sporttrade | Kalshi | Underdog |
|---|---|---|---|
| Regulation | State gaming (5 states) + CFTC DCM pending | CFTC DCM (federal) | FCM + owns Aristotle DCM/DCO |
| State availability | 5 states (AZ, CO, IA, NJ, VA) | 45+ states | ~31 states |
| Fee model | 2% on net winnings | 7% × P × (1-P) per share | TBD post-acquisition |
| Exchange model | Peer-to-peer (exchange) | Exchange (DCM) | Exchange (Aristotle DCM/DCO) |
| Market types | Sports only | Sports, politics, economics, weather | Sports only |
| Vig/spread | None — commission only | None — fee formula only | TBD |
| Founded | 2018 | 2018 | 2020 (DFS) |
In plain English: Sporttrade's "2% on net winnings" means you only pay if you win. Sporttrade takes 2 cents from every dollar of profit. If you lose, you pay zero fees.
Who Should Use Sporttrade?
Target Audience
Sharp sports bettors (in eligible states)
Strong fitNo vig, 2% on net winnings, and true exchange pricing mean better long-run costs than most sportsbooks. In plain English: you only pay when you profit — Sporttrade takes 2 cents from every dollar you win. Critical: must be in AZ, CO, IA, NJ, or VA.
Exchange-style traders
Strong fitIf you're comfortable with order books, bid/ask spreads, and trading against other users rather than a book — Sporttrade's market structure is familiar.
Politics/economics prediction market traders
Wrong platformSporttrade is sports only. Use Kalshi or Polymarket for political, economic, or entertainment markets.
Users outside AZ/CO/IA/NJ/VA
Not availableSporttrade is not available outside its 5 licensed states. Watch for CFTC DCM approval, which could expand availability significantly.
How to Sign Up
Getting Started
Confirm state eligibility
Sporttrade is only available in Arizona, Colorado, Iowa, New Jersey, and Virginia. Verify you are physically located in one of these states.
Download the Sporttrade app
Available on iOS and Android. Geographic verification is required at download and login.
Create an account
Standard identity verification (age 21+, full legal name, address, date of birth). State gaming license requirements apply.
Deposit funds
Sporttrade supports standard deposit methods. Check the current published minimums and available methods on the Sporttrade website.
Learn the exchange interface
Sporttrade uses an order book interface — place limit or market orders on sports event contracts. The exchange model is different from traditional sportsbooks.
Frequently Asked Questions
4 common questions answered
Related Resources
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