Investor FAQ
Common questions from existing and prospective investors.
Frequently Asked Questions
Smarkets operates two customer-facing products. The Smarkets exchange is a prediction market where users trade on the outcomes of real-world events, sports, politics, entertainment, by buying and selling contracts. SBK is a consumer sportsbook that offers better odds than traditional bookmakers by pricing through the exchange. Our proprietary market-making engine quotes prices on both sides of thousands of markets simultaneously, earning the spread.
Both products share the same underlying technology infrastructure, meaning we can enter new markets and asset classes without rebuilding from scratch. For more detail, see our About page and Technology page.
Revenue comes from three sources. Market making earns the spread between buy and sell prices across thousands of markets, this is our principal revenue stream and operates with a specialized team. SBK (sportsbook) earns revenue from the edge built into each price, with customer acquisition costs that have compared favorably with many sportsbook operators. Exchange fees are approximately 2% of net profit per market.
Yes. In FY2024, the company generated $31.4M in revenue, $10.2M in EBITDA, and maintained gross margins of 79%. Our audited annual reports from 2015 onwards are published on the investors page.
A betting exchange and a prediction market are interchangeable terms often used to describe marketplaces where buyers and sellers trade contracts on event outcomes. They remove the traditional bookmaker from the equation, and produce prices that reflect the market's collective probability estimate for an event. The difference is one of language. "Betting exchange" comes from the betting industry in the UK; "prediction market" comes from finance and academia with more of a US angle.
Smarkets currently holds licences in 5 jurisdictions: the United Kingdom (UK Gambling Commission), Malta (Malta Gaming Authority), Ireland (Revenue Commissioners), Sweden (Spelinspektionen), and Indiana, United States (Indiana Gaming Commission). We also have a CFTC application pending for federal approval to operate a prediction market in the US. Full details are on our Licensing page.
The Commodity Futures Trading Commission (CFTC) regulates event contracts in the United States. Smarkets has applied for approval to operate a prediction market for event contracts, allowing US residents to trade on the outcomes of real-world events under federal regulation. If approved, this would open a substantial new market for the company. Several other firms have received CFTC approval for specific event categories, and the regulatory framework continues to evolve. The timeline for any regulatory determination is uncertain.
Smarkets Limited is a private limited company incorporated in England and Wales. The company has raised $35M in equity capital from institutional investors including Susquehanna Growth Equity, Passion Capital, and DTCP. The founding team and employees with vested equity also hold significant ownership. As a private company, detailed share capital information is available through the annual accounts filed with Companies House.
Smarkets has 100+ people, with around 45% of the team in engineering and technical roles. The company is headquartered at St. Katharine Docks, London. We are engineering-led by design: we build everything ourselves (exchange infrastructure, front-ends, market-making algorithms, risk systems) which gives us a technical advantage and keeps the team lean relative to revenue.
Smarkets Limited files audited annual accounts with Companies House in accordance with the Companies Act 2006 and applicable UK accounting standards. Our annual reports from 2015 onwards are available for download on the investors page. They are also publicly available through the Companies House register.
For investor enquiries, including requests for the investor deck, meeting requests, or general questions, email investors@smarkets.com. For press enquiries, contact press@smarkets.com.