(AsiaGameHub) –   Sporttrade, a regulated prediction market for sports betting, has announced that it is exiting the U.S. sports betting market just three months after submitting an application to the Commodity Futures Trading Commission (CFTC) for approval.

Users in New Jersey were informed that service shutdowns began on May 25 and were advised to withdraw their funds before losing access.

Players in Arizona, Colorado, Iowa, and Virginia will retain access to the platform until June 25 to withdraw their balances. The platform is scheduled to go fully offline in these states on June 26.

The CFTC application was linked to Sporttrade’s exchange model, which offered prediction-style positions on sports events.

Alex Kane, founder and CEO of Sporttrade, stated after submitting the application:

Today marks the beginning of an incredibly exciting chapter in the Sporttrade journey. The CFTC’s market-based regulatory framework allows Sporttrade to deliver a higher level of efficiency, transparency, and consumer protection compared to what we’ve been able to provide so far.

Sporttrade underwent a challenging regulatory process to become the first-ever sports betting exchange in the United States.

While competitors Kalshi and Polymarket pursued CFTC approval directly, Sporttrade initially sought approval from state gaming regulators in all five states where it operated. The major obstacle with this approach was that existing regulations were designed for traditional sportsbooks and offered little to no flexibility for exchange-style platforms.

After determining that this path would not succeed, Sporttrade applied to the CFTC in April of last year. The process from initial CFTC application to receiving regulatory approval took nearly 12 months and involved separate filings for both the exchange and the clearinghouse.