Get Out AHEAD has developed software called Fantasy Sports Hedging Xchange and Hedging Xchange that allows sports bettors, horse players and fantasy sports players to sell all or part of their bet or entry to a third party after it is live. The software integrates with a casino’s sports book, an Advance Deposit Wagering (ADW) platform or a fantasy sports platform, creating a closed virtual marketplace where anyone who has registered a sports wager, horse bet or fantasy sports entry can offer all or a designated fraction of their live ticket for resale to anyone else in the same sports book or online operator’s platform.
The full or fractional selling of bets/entries/teams increases liquidity for the sellers. Buyers can purchase bets and entries that are in more attractive positions, or they can buy bets and entries at a discount if the odds of winning are worse than when the bet or entry was originally made. The institution running the sportsbook or advance deposit wagering platform or hosting the fantasy sports exchange benefits as well, because both buyers and sellers are spending more money on their platform and user activity is much greater, thereby providing exponential opportunities for additional commissions and advertising revenue.
To facilitate an easier second-hand transaction, the software includes a proprietary pricing mechanism specific to the hedging exchange or sportsbook that provides a low, medium or high price estimate for a resold ticket. The determination of the price estimates may be based on a number of factors, including, but not limited to, current real-time odds, odds of the original wager, percentage of wager offered, and maximum payouts. This helps the seller set a realistic price quickly and allows buyers to better evaluate the ticket or entry they are considering buying.