PropSwap Offers its Side: Scandal Rocks Industry as Customer Claims He is Owed Over $12K
Following Gambling911com's report that a player is still owed $12,000 on a popular eCommerce site for sports bettors, the company has offered a response.
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.
Sellers can list a ticket (or bet) they made at a sportsbook and wish to sell prior to the conclusion of an event such as the Super Bowl.
Buyers browse the PropSwap site and purchase their desired ticket (bet), just as Cat did for the Super Bowl.
PropSwap says it ensures the physical ticket is delivered to the buyer via certified mail.
This platform offers sports gamblers the flexibility to secure profits or cut losses before the conclusion of an event, providing an additional layer of strategy to sports betting.
It does not guarantee one's money back, however, and one customer is finding this out the hard way.
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 came out less than 24 hours to offer its side of the story, issuing the following statement.
"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."
Gambling911.com cannot independently confirm that fraud occurs regularly at these sites, however, eBay at least does offer a money-back guarantee, something that PropSwap does not.
The statement continues: "To be transparent, the rate of not fully paid out Sale, on PropSwap, over the last 12 months, is .0002% of our sales.
"We will continue to work with the buyer and try to reach a reasonable conclusion for all parties.
"Thanks and enjoy The Masters."
As one might imagine, their statement didn't necessarily sit well with the gambling public.
— Frankie Taddeo (@RespectedMoney) April 9, 2025
Luke tweeted:
"Impossible to spin this any other way but incompetence. How broke are these companies that they would rather burn it all down than cover 12k?
"But but but we did a zoom interview !
"Could not imagine anyone feels comfortable to do any business on this platform any longer."
Patrick writes:
"This happened on your watch. pay that man out of your own pocket and take the hit. ridiculous man."
Isaac chimed in:
"wild to do this much reputational damage over 12k. just pay the guy lol."
And Cleveland Cam noted what we did above in reference to eBay:
"You tried to frame your way out w/ this statement
"Key point you’re leaving out is those other sites all offer buyer protections & guarantees. The company will reimburse you IN FULL if the seller doesn’t come through.
"Has to be your policy or you’re done for, unfortunately."
To be continued...
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