(AsiaGameHub) –   Sporttrade has announced its decision to cease its online sports betting operations in the US, with its US-facing platform scheduled to close on June 26. This move appears to represent a reversal from Sporttrade’s prior efforts to obtain CFTC approval for its prediction market products.

Sporttrade to Exit the US OSB Market on June 26

Sporttrade, which had previously appeared optimistic about its US expansion, has made a significant shift in strategy by announcing the discontinuation of its online sports betting markets. According to a company announcement made on May 15, all betting activities on Sporttrade will conclude on May 25.

The company clarified that players in New Jersey will have until this date to withdraw their funds. However, players located in Arizona, Colorado, Iowa, and Virginia will have until June 25 to do so.

Sporttrade also confirmed that June 26 will be the final date for all platform access for all users. The company stated that any players who have not withdrawn their funds by this date will receive checks mailed to their registered addresses.

Sporttrade Sought Traditional Regulation

Sporttrade’s experience in the US market suggests that being ahead of the curve can sometimes be detrimental. The company had consistently aimed to offer a prediction market-style product. However, its US launch predated the establishment of the CFTC-regulated prediction markets sector, compelling it to pursue licenses typically associated with traditional gambling operators.

Once the CTFC framework was established, Sporttrade’s competitors were effectively permitted to operate nationwide, placing the company at a significant disadvantage. Subsequently, Sporttrade submitted an application to the CFTC, seeking designation as a contract market and derivatives clearing organization.

At the time, Sporttrade’s leadership highlighted that CFTC approval would enhance the company’s operational efficiency and enable it to continue offering its products in a secure and transparent environment.

However, the CFTC approval process proved to be both time-consuming and expensive.

Prediction Markets Are a Point of Contention

Meanwhile, prediction markets continue to be a subject of debate in the US, with many established gambling industry regulators, stakeholders, and tribal gaming organizations expressing concerns regarding the sector’s rapid expansion.

In addition to reservations about the CFTC-based regulatory structure, numerous parties have voiced worries about the potential for insider trading.