Sports betting marketplace PropSwap enacts policy overhaul after betting slip chaos

After accusations of misleading users were levelled online, sports betting marketplace PropSwap has responded to complaints.

PropSwap, which operates a secondary marketplace for sports betting slips, has confirmed it will issue a full payout to the customer at the centre of a social media controversy. It began when a Caesars Sportsbook customer sold a futures parlay bet via PropSwap that went on to cash out. The customer expected to get a payout of $37,000, but the net amount after both federal and state tax withholding guidelines was actually closer to $25,700.

Other gambling enthusiasts online backed the customer, saying that PropSwap had misled customers. PropSwap co-founder and CEO Luke Pergande maintained that the seller was explicitly informed via a recorded 20-minute video and several emails that bets listed for sale must reflect the post-tax value, an amount of over $10,000 in this case.

“We told him that he needs to post this bet for net tax,” Pergande told NEXT.io. “Which, net tax was $25,700. And we didn’t catch it. It slipped through the cracks.”

Further controversy was raised after PropSwap seemingly attempted to crowdfund the funds for the customer, as the marketplace offered a promotion covering part of a new user’s first bet in a now-deleted post on X.

However, Pergande stated that this wasn’t an effort to crowdsource the original payout, highlighting that it was meant to be a way to get people to try out the marketplace for themselves but it “didn’t land” and was “in no way, shape or form…a crowdfunding exercise.”

Let me counter this bullshit attempt of a company trying to turn their tragic fuckup into a marketing ploy.

Propswap is useless if they don’t guarantee their customers.

If we can get 1200 likes/retweets/comments to never use PropSwap again, my friends at @WagerWire will… https://t.co/vyAIOsBZd7

— spanky (@spanky) April 10, 2025

PropSwap confirmed on Thursday, April 10, that it would make a full payout to the customer. However, it maintains that the payment will be made out of company funds as a goodwill gesture, stating that the company has no legal obligation to do so.

What’s more, the company will put a new policy in place to add extra levels of internal review, with every mobile ticket listed for sale now needing to be manually checked by staff before approval.

“We’re not as big as eBay is yet,” Pergande added. “So, we can delegate an employee to do this.”

Despite the chaos on social media, Pergande remains positive about the marketplace’s future, saying: “We’ve been running this business for 10 years. We’ve had 300+ articles of positive press; this is kind of our first negative story. It’s our opinion that a lot of people have been happy for the years.

“But it takes just one bad situation. So, we’re working on it, and we think we can solve this moving forward.”

Featured image: Midjourney

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