Paddy Power will launch the world’s first sports trading exchange, a virtual stock market, under the name American SportZ Exchange (ASX).
Paddy Power Launches American SportZ Exchange
Paddy Power, an Irish bookmaker founded in 1988, will launch the first sports trading exchange through its new startup company, American SportZ Exchange (ASX). The virtual stock market would allow customers to buy shares in teams and players based on their expected performance. For instance, if a user believes a player or a team will perform great, they can buy or sell shares based on their expectations of the athletes’ performance. The company will offer live “share prices” of teams and players. The startup’s website currently accepts beta requests and runs from Ireland. However, it mainly targets the US market.
David Power, son of the founder of Paddy Power, has already started discussing exclusive partnerships with broadcasters and professional sports teams in North America, including Toronto Blue Jays baseball teams, Philadelphia Phillies, Las Vegas’s Golden Knights ice hockey team, DAZN, an online sports video streaming service, and Sinclair Media, a US broadcasting group. Paddy Power has also entered discussions with Canada’s Rogers Media.
Who Is on the ASX Power Team?
Power has recruited a fascinating team of professionals in the industry, like Mike Griffin, Racing Post’s commercial director. He will be ASX’s new CEO. The Power team also includes Conall Flood, former Banco Santander electronic foreign exchange technology lead, and other former Paddy Power and JP Morgan employees.
When commenting on the team, Power stated that he has worked on the project for several years. He said that he is ready “to hand over the keys to the grown-ups.” He will remain the brand ambassador for Paddy Power Betfair.
ASX Launches with €500,000 Crowdfunding Campaign
Power said that he is not expecting “serious funding” in the business for at least a year. He is launching a €500,000 Crowdfunding campaign, with a €4.5 million valuation to support the platform.
Power told the Irish Independent that it is a virtual stock market for players, allowing fans to speculate based on the individual athletes’ or teams’ performance. He said that the startup includes several models: standalone exchange and “white label” solution for media operators or sports teams.
Power also said that the startup would give opportunities to clubs and teams to “own” their fans’ engagement. All the teams want to keep their fans on their site instead of having them go somewhere else. He said that the US market is getting bigger, and it is the primary target for the startup right now. However, there is no reason why it wouldn’t work on other markets as well.
Paddy Power recently reopened many of its gambling shops in England, Scotland, and Wales, yet another cause to celebrate. The Scottish shops were the last, with authorization to open on April 26.