TLDR
- Sporttrade is closing all US sports betting operations, with New Jersey users losing access May 25 and remaining states by June 26
- The shutdown comes just three months after Sporttrade applied to the CFTC for approval as a designated contract market
- Customers in Arizona, Colorado, Iowa, and Virginia have until June 25 to withdraw funds before the platform goes offline
- Sporttrade had been operating in New Jersey since 2022, predating rival Kalshi’s sports contracts by over two years
- The company initially tried to work under state gaming regulators before pivoting to the CFTC, but neither path led to a sustainable model
Sporttrade has announced it will shut down its sports betting operations across the United States. The closure affects users in five states and marks an abrupt end to the company’s push into exchange-style sports wagering.
New Jersey customers were told their access will end on May 25. They must withdraw their funds before that date.
Sporttrade Sets State-by-State Shutdown Timeline
Users in Arizona, Colorado, Iowa, and Virginia have a longer window. Those customers have until June 25 to pull their balances from the platform.
The platform is scheduled to go fully offline on June 26. Any funds left in accounts after the deadlines will be mailed to the addresses on file.
The timing of the closure stands out. Sporttrade submitted an application to the Commodity Futures Trading Commission just three months ago, seeking approval to operate as a designated contract market and derivatives clearing organization.
That application was directly tied to the company’s exchange model. The model allowed users to take prediction-style positions on sports events rather than placing traditional bets.
CEO and founder Alex Kane had expressed optimism when the application was filed. He called it “an incredibly exciting chapter” for the company.
Kane said at the time that the CFTC’s framework would give Sporttrade the ability to offer better efficiency, transparency, and consumer protection than what it had been providing under state-level oversight.
A Rocky Road Through Regulation
Sporttrade’s regulatory journey was complicated from the start. Unlike competitors Kalshi and Polymarket, which went directly to the CFTC, Sporttrade first sought approval through state gaming regulators.
That strategy placed the company under rules designed for traditional sportsbooks. Those rules were not built to accommodate exchange-style platforms.
The company operated in five states under that framework. It only turned to the CFTC later, beginning the federal application process in April of last year.
The CFTC application process took close to 12 months. It required separate filings for both an exchange license and a clearinghouse license.
Sporttrade had been offering sports contracts in New Jersey since 2022. That was roughly two and a half years before Kalshi launched its own sports event contracts around the 2025 Super Bowl.
Despite its early entry, Sporttrade faced repeated obstacles. Legal gaps at the state level left no clear framework for exchanges, and the CFTC had opposed sports event contracts until shifting its stance in early 2025.
Kane acknowledged the challenge when the CFTC application was submitted. He said the company had originally built its platform expecting that sports trading would follow the path of other electronic markets toward efficiency through broker intermediation and institutional participation.
That expectation did not play out. The regulatory landscape proved too fragmented for Sporttrade to find a workable path forward.
The closure now leaves Kalshi and Polymarket as the main players in the prediction and exchange-style sports market in the US. Sporttrade’s exit removes one of the earliest entrants in the space.
Any remaining customer balances after the June deadlines will be sent by mail to addresses listed in user account records.
