NEW YORK, Nov 13 (Reuters) – InPlay Global, a new platform that allows investors to trade securities tied to the performance of sports teams, signed a partnership on Wednesday with exchange operator MEMX ahead of the launch of its trading venue next year.
The tie-up comes at a time when sports betting is booming in the U.S., bolstered by a friendlier regulatory regime under the Trump administration. Upstart trading platforms like Polymarket and Kalshi, which offer event contracts, are disrupting the sports betting business that has been dominated by gambling companies.
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The growth of these prediction-market startups has triggered a backlash from the gambling industry, with some U.S. state regulators arguing that event contracts run afoul of rules on sports gambling.
As part of the partnership with InPlay, MEMX will provide its market technology and trading infrastructure for the Miami-based firm’s planned alternative trading system (ATS), executives at the companies told Reuters. InPlay’s application for the launch of its trading venue is currently awaiting approval from the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.