Get Out AHEAD LLC has announced the launch of Hedging Xchange, a software program that integrates into a casino’s sports book, horse track or advance deposit wagering ecosystem to create an online marketplace, allowing anyone who has placed a wager with the participating entity to “hedge their bets.”
Bettors can offer to sell all, or a designated fraction, of a live bet to a third party with a registered account with the entity. Alternatively, it gives buyers the opportunity to enter into positions (potentially with increased odds of winning) that in the past they would have been locked out of.
Get Out AHEAD’s Hedging Xchange would be part of a casino sports book, horse race track or off track betting location network, so wagers that have been bought and sold are documented and would not be turned away, as could happen with current swap programs that deal with physical paper tickets.
“This is a completely new concept in casino sports betting that will breathe new life into an industry that has not fundamentally changed since its inception,” said Dominic LaRocca, Co-Founder and Chief Technology Officer of Get Out AHEAD. “Hedging Xchange allows bettors to keep a play liquid, add action or reduce risk, while permitting new players to get into action on what would be considered a closed bet.”
The Hedging Xchange patent pending technology assists in setting sale or purchase prices on wagers based on several factors including current real-time odds, percentage of wager offered, odds of the original wager and maximum payout. This helps sellers to set realistic prices quickly and allows buyers to better evaluate potential opportunities. The host entity maintains control of each traded position without incurring additional payout exposure for any given bet.
The Hedging Xchange’s virtual marketplace enables an account holder to render payment for the purchased ticket via electronic funds transfer. Once a bid is accepted, funds are immediately transferred from the buyer’s account to the seller’s account and a digital transfer of the wager takes place.
Additional benefits of Hedging Xchange to the host entity include: increased player activity without incurring supplementary liability; a new revenue stream on a previous transaction; closely monitored transactions which guards against potential money laundering activity; and full tax/accounting reporting.