May 24, 2024 3 min read

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NGCB Rejects Sports-Betting Ticket Resale Business

Despite the recent rejection from the gambling watchdog, PropSwap continues its efforts with support for legislation that proposes legalization of betting tickets reselling

Nearly a decade ago, in 2015, PropSwap, a Las Vegas-based company with the idea of reselling sports bets, pitched its proposal to the Nevada Gaming Control Board (NGCB). Although it wasn’t clear whether reselling sports bet tickets was legal in the state, nor a license was secured for such activity, a year later, the company introduced its services to customers in Nevada.

Several years passed before August 2021, when the NGCB informed PropSwap via a letter that the activity was against the law in the state. Shortly after, the company received a cease-and-desist letter and discontinued its offering. However, this wasn’t the end for PropSwap, which decided to take the matter to court.

Earlier this week, the latest part of the legal battle played out with the company receiving a denial for its proposal by the Board. As announced by CDC Gaming, the NGCB voted against a proposal for regulation tabled by PropSwap.

After the company stopped operating a few years ago, it filed a lawsuit which was denied by a district court. Disagreeing with the judgment, PropSwap filed an appeal with the Nevada Supreme Court. However, the appeal resulted in a settlement under which the NGCB agreed to review the company’s request. Considering the Board’s latest decision, this legal process is now complete.

If Betting Ticket Reselling Isn’t Regulated, Bettors May Go Underground

However, PropSwap’s efforts continue as the company previously supported a bill that was after legalizing betting ticket reselling. Interest in the bill by Nevada lawmakers wasn’t great which is why it failed to gain traction this season. Still, while this closes the door for the proposal temporarily, the bill may return next year.

PropSwap effectively wants to offer bettors the ability to sell their tickets. Such an activity would come ahead of a tournament or a sports event, allowing bettors to exchange their tickets for a specific amount even before the outcome of the bet is certain.

The NGCB was skeptical of the proposed activity, raising concerns about know-your-customer (KYC) policies and taxation for the activity. The Board also questioned whether the activity is needed with chairman Kirk Hendrick asking why existing licensed betting operators wouldn’t offer such an option. “I haven’t had a licensee come and say, ‘We’ll do that.’ This is early cash-out, which isn’t your mousetrap, but a similar mousetrap,” explained Hendrick.

Marc Rubinstein, PropSwap’s attorney, warned that failure to implement regulations for sports betting ticket reselling may result in bettors engaging in such activity via the black market. “If you really believe people won’t resell their tickets because we don’t have a regulation, that’s a fantasy,” said the attorney. Rubinstein spoke about the proposed legislation, saying that it is a “tidy and simple regulation” for ticket resale providers to be licensed.

Journalist

Jerome is a welcome new addition to the Gambling News team, bringing years of journalistic experience within the iGaming sector. His interest in the industry begun after he graduated from college where he played in regular local poker tournaments which eventually lead to exposure towards the growing popularity of online poker and casino rooms. Jerome now puts all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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