Former FX Traders Launch SportStack Exchange Betting Company

Advika KocharAdvika Kochar

Advika Kochar

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  • Advika Kochar
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  • Last modified: December 15, 2019

When you think about it, forex trading has a lot in common with sports betting. Both require a good deal of industry knowledge and speculation is the name of the game. Two former Goldman Sachs traders seem to have come to the same conclusion and have now launched SportStack, a fascinating spread betting company that combines elements of trading and traditional sport betting.

Former FX Traders Launch SportStack Exchange Betting Company element04 - CasinoTopWhat is SportStack?

Before we explain what SportStack is, it is worth going over the basics of sports betting. Simply put, the gambler puts money on a particular result or combination of results in a sporting event. This could be anything from Premier League football to small national tournaments.

The main way SportStack differs from traditional sports betting is that it is not the result that is of interest but the performance of the athletes on the pitch, track or field. At the moment, SportStack is focussed solely on Premier League football but the applications of the platform could easily be scaled to include other sports. The company calls itself the world’s first sports trading exchange.

SportStack ranks and rates football players based on their performance during matches. Instead of a binary betting system i.e. the team either wins or loses and so the gambler either wins or loses, depending on what the bet was about, SportStack uses an AI system to allow real-time buying and selling, as they would on the stock or forex market.

Player performance is the name of the game and gamblers win or lose depending on the share price of that particular footballer. Gamblers can buy or sell shares in that player to other platform users.

Former FX Traders Launch SportStack Exchange Betting Company element01 - CasinoTopDeveloping a new way to bet

Upending the traditional sports book structure is no mean feat and indeed, it took Nicholas Smith and Kristian Brauten-Smith two years to get the platform up and running. Its recent launch in the UK market comes ahead of planned international expansion.

SportStack aims to give players more options than those offered by the sports betting products we are currently familiar with.
“We believe it is crazy that you can bet on almost anything in sports except the most important feature of them: the players,” said Nick Smith, founder and CEO at SportsStack. While traditional sports bookmakers certainly cover a wide range of outcomes to bet on, SportStack lets gambler wager on how well a player performs on the pitch.

This allows room for speculation, a term familiar to those who follow the financial world, and each match is an opportunity to buy and sell shares in football legends like Kane, Pogba and others. SportStack has set out to expand the betting possibilities available to sports fans today.

Former FX Traders Launch SportStack Exchange Betting Company element03 - CasinoTopHow it works

SportStack also has similarities to another popular betting activity – fantasy sports. This is the only opportunity out there for gamblers who wish to bet on player performance during matches. This new platform lets gamblers do just that, only with real cash.

Smith explains that the concept of SportStack differs from other products because it is what he called a true exchange. With something like Football Index, gamblers are betting against the ‘house’ rather than other gamblers. In SportStack, we get the option to go short or long on bets made by other SportStack users.

Here is how it works, using Virgil van Dijk, Liverpool’s centre-back as an example. During the course of a match, van Dijk will gain and lose value depending on what happens during the event.

The SportStack Scoring Table sets out a range of metrics that determine the overall score for van Dijk in that match, on a scale from 0 to 100. For instance, every on-target shot awards +5 points and a goal awards 20 points. At the end of the match, the gambler who bet on van Dijk will receive a payout according to the overall game score by that single player. Even if Liverpool lost the match, van Dijk’s performance alone could result in a payout.

At the start of the week, Match Markets for a specific football match are opened and they remain that way until the match in question has ended. Users can buy or sell their shares throughout.

CEO Nick Smith said that SportStack was developed with responsible gambling as a top priority, “We firmly believe that when a bet doesn’t go your way you shouldn’t lose all of you money – that’s a tired industry model.” Taking inspiration from the speculative wagers made around the world every day in the financial sphere, SportStack aims to give sports bettors a new way to play.

Advika Kochar
  • Editor Rating
  • Rated 4.5 stars
  • 80%

  • Advika Kochar
  • Reviewed by:
  • Published on:
  • Last modified: December 15, 2019