The Capitol Forum recently published an article examining the difficulties Sporttrade has faced trying to operate an exchange-style sports prediction platform under existing state gambling laws.

Sporttrade was created to allow users to buy and sell contracts on the outcomes of sporting events, similar to how traders interact on financial exchanges. But bringing that model into the highly regulated U.S. sports betting market has proven difficult.

The company spent years working with state regulators and pursuing licenses across the country. After significant lobbying and compliance costs, it ultimately secured approval in only five states and operates a much more limited version of its original concept.