ProphetX

About ProphetX

Prophet Exchange, operating as ProphetX, is a sports betting company founded in 2018 by CEO Dean Sisun and COO Jake Benzaquen. The two Vanderbilt University alumni, who had backgrounds in investment banking and financial consulting respectively, were avid sports bettors who conceived the idea for the platform after a personal betting experience left them wanting a way to trade in and out of active bets. Initially, they launched a secondary marketplace concept in the U.K. to test the market before turning their focus to the United States.

The company's primary product is a peer-to-peer betting exchange, a model that differs significantly from traditional sportsbooks. Instead of betting against "the house," users bet against each other, setting their own odds or accepting prices offered by other users on the platform. This structure allows Prophet to act as an intermediary, taking no financial risk on the outcome of wagers. Consequently, the business model is based on taking a commission on winning bets, which enables the platform to offer better prices and avoid the large vigorish (tax) charged by conventional sportsbook operators. The platform is available on iOS, Android, and desktop.

After securing a multi-year market access agreement with Caesars Entertainment, Prophet Exchange launched in New Jersey in August 2022, becoming the first regulated peer-to-peer betting exchange to go live in the U.S. at the time. The platform offered moneyline, spread, and total markets for major U.S. sports leagues like the NFL, NBA, NHL, and MLB, as well as college sports. A notable milestone was handling over $1 million in matched bets during Super Bowl LVII. Despite securing over $10 million in a 2023 funding round from investors including MIXI Inc., Ninjabet.com, and Chicago Trading Company, the company faced challenges in the regulated U.S. market. In May 2024, Prophet Exchange ceased its New Jersey operations and announced a strategic pivot. The company is rebranding to ProphetX and shifting to a sweepstakes model, which will allow it to operate in over 40 states. This new model will use virtual currency for a free-to-play experience, with options to purchase additional currency for contest entries.