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It's been a very bad week for PropSwap, the eBay of sports betting.
PropSwap is not a sportsbook in the traditional sense. It is instead an online marketplace that sort of resembles eBay, but for gamblers. The company is based in Las Vegas.
Users can buy and sell active sports betting tickets.
TheCat23454 claims the company still owes him $12581 after a seller reneged on a winning Super Bowl bet ticket.
"I have had good experiences with @PropSwap in the past but unfortunately for this ticket I've been owed $12581 for coming up on two months. I paid $5400 upfront to purchase the ticket when I bought it in December. Unfortunately after the ticket won, the seller does not want to pay the full amount of $38292, and PropSwap doesn't want to make up the difference."
PropSwap offered its side after Gambling911 and other media outlets picked up on the story.
"We wanted to provide a bit more context into the winning Eagles sale, that TheCat23454 bought in December. Their bet had original odds of > 300/1, so therefore, it had federal taxes and state taxes withheld. The seller was paid $25,7111 by Caesars Palace. He sent these funds to us, of which we sent directly to TheCat23454.
"The seller did indeed incorrectly list the item for a pre-tax amount, not the past tax amount (even after the mandatory Zoom interview with PropSwap management) during the offboard in which we remind all sellers they must list tickets post-tax, not pre-tax.
"We believe it was an honest mistake, however, legally he is obligated to transmit to PropSwap the full collect amount for any bet he posts on our site.
"It is important to remember that PropSwap is NOT a sportsbook, and we do not guarantee winnings. This is why Buyers get better odds than a traditional sportsbook, quite consistently. Because you are buying from other sports bettors, not PropSwap.
"We are eBay, We are StubHub, we are StockX. And rest assured fraud happens on those sites daily, at a far higher rate than at PropSwap."
Those on social media were quick to point out that, unlike StubHub, StockX and eBay, PropSwap does not offer a money back guarantee.
Then things got even stranger.
The company appeared to be trying to capitalize off this episode with a unique - and let's just say a rather bizarre - promo offer.
If you’re ever having a bad day, just know it’s not as bad as PropSwap trying to turn intentionally defrauding their own customers into a marketing scheme for more users.
— WagerWire (@WagerWire) April 11, 2025
(Tweet is now deleted, but may it live on forever) pic.twitter.com/7ZMJfof0tG
WagerWire captured the screenshot of the since deleted PropSwap promo.
Goffin Goof wrote of PropSwap:
"They literally gave a step by step process how to destroy a business through this incident."
According to Elf, PropSwap intends to make TheCat23454 whole by paying him the $12581 still owed.
GOOD THINGS HAPPEN ON THE ELF SHOW
— Elf (@yElff_) April 11, 2025
Had a great episode today with @PropSwap and they officially announced that they will be making @thecat123454 completely whole off the $12,561 tax withholdings
Glad to see they came around and hope nothing… https://t.co/gqCfq64Elq
We'll believe it when we see it.
Full link to the elf spaces https://t.co/NHAHdGgSax
— Elf (@yElff_) April 11, 2025
According to TheCat23454, PropSwap is only offering to pay him half of that $12.5K still owed.
"Update, today I talked with PropSwap’s CEO on the phone and they offered me $6k today, which I am happy about receiving. They also shared with me a plan about options for the full $12.5k moving forward, and improvements they are making to their process to prevent this sort of situation from occurring in the future. They wrote a public statement and will be sharing it on their X/Twitter profile, as well as appearing on Elf's Spaces today."
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