# Smart Traders Shift to ProphetX

> ProphetX offers peer-to-peer sports betting with 1% fee, beating sportsbooks' 10.2% margin.
- Title: Smart Traders Shift to ProphetX · Maxim | Shortify
- Summary: ProphetX offers peer-to-peer sports betting with 1% fee, beating sportsbooks' 10.2% margin.
- Keywords: prophetx, sports betting, peer-to-peer exchange, sportsbooks, sports betting exchange, sports betting platform, Maxim
- Source: Maxim — https://maxim.com/partner/why-smart-traders-are-flocking-to-prophetx
- Published: 2026-11-05T13:00:00+00:00
- Read time: 1 min
- Topics: prophetx, sports betting, peer-to-peer exchange, sportsbooks, sports betting exchange, sports betting platform
## ProphetX: Peer-to-peer betting platform
ProphetX is a peer-to-peer prediction market where traders take opposing sides of event contracts without a house margin.
## Sportsbook margin problem
Traditional sportsbooks keep 10.2% of all wagers as implied national sportsbook hold.
## ProphetX's 1% fee model
ProphetX charges an average of just under 1% fee for matching bets, eliminating house margin.
## ProphetX founders
Dean Sisun and Jake Benzaquen, Vanderbilt economics majors, created ProphetX after trading sports options.
## ProphetX's sports focus
ProphetX focuses on sports betting because founders were fanatical sports bettors who disliked sportsbook experiences.
## ProphetX launch history
ProphetX began in the UK in 2017, launched in New Jersey in 2022, and now operates in 40 states.
## ProphetX's sweepstakes pivot
ProphetX switched to a sweepstakes model to enter 40 states without state-by-state regulation.
## ProphetX's regulatory challenges
ProphetX faced regulatory crackdowns in California and New York, leading to a pivot to federal commodities rules.
## ProphetX's user success
35% of ProphetX users are long-term winners, versus 2% at traditional sportsbooks.
## ProphetX's financial impact
ProphetX's revenue increased 10-fold after switching to sweepstakes model within six months.
## ProphetX's features
ProphetX offers edit open positions, frictionless trading, and netting wallet for offsetting opposing bets.
## ProphetX's current status
ProphetX now operates in 40 states with over 200,000 registered users.
## ProphetX's competitive edge
ProphetX users average -1% ROI versus sportsbooks' -10% average for most bettors.
## ProphetX's future
ProphetX is expected to grow as more users adopt its peer-to-peer betting model.
## Key takeaway

ProphetX's 1% fee and no house margin attract traders who win 35% of the time versus sportsbooks' 2% long-term winners.