High Roller agrees ProphetX deal to expand event contracts offering

Planned integration will enable eligible ROLR customers to access ProphetX's sports-focused exchange

High Roller Technologies has agreed a deal to integrate access to ProphetX's federally regulated prediction markets exchange through a ROLR-branded interface.

Through its newly established wholly owned subsidiary, ROLR FCM, the planned integration will enable eligible ROLR customers to access additional sports event contracts on ProphetX.

Eligible users will be able to view ProphetX market data, submit orders electronically for execution on ProphetX's exchange, and access and manage their ProphetX trading accounts through a ROLR-branded interface.

The agreement provides for an effective date six months after ROLR FCM receives registration as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC), unless the parties mutually agree otherwise.

"Expanding the markets available through ROLR is an important part of building a platform that traders choose to engage with," said High Roller CEO Seth Young. "Our agreement with ProphetX combines additional sports markets with a revenue-sharing structure that allows ROLR to earn a portion of net fees generated by traders accessing ProphetX's exchange through our interface.

"We believe this creates an attractive opportunity to generate an additional revenue stream by building on the ROLR brand, customer experience and marketing capabilities as we grow the business."

ROLR will manage branding, marketing, customer acquisition and interface distribution, while trading would remain subject to ProphetX's rules and eligibility requirements.

The agreement also provides flexibility for ROLR to continue expanding its offering through connections to other exchanges, subject to terms.

"ROLR is building a prediction markets business around its brand, customer experience and distribution capabilities," said Jake Benzaquen, co-founder and chief commercial officer of ProphetX. "Our infrastructure gives partners a way to bring our event contracts directly into their products, while ProphetX handles the exchange and clearing functions. We look forward to working with High Roller to extend access to our markets through ROLR."

Earlier this week, High Roller entered into a discovery agreement with Connamara Technologies to assess the operating model and technology requirements for a potential FCM focused on event contracts.

Shares in High Roller Technologies Inc (NYSEAMERICAN:ROLR) closed 1.87 per cent higher at $3.26 per share in New York Thursday.