Sports betting trading platform PropSwap said it is not responsible for an unpaid difference of more than $12,000 for a winning Super Bowl ticket.
Key Takeaways
- The ticket was listed with its pre, not post-tax
- PropSwap said in a statement it is not responsible for paying customers' winnings
- The platform said it experienced fraud in 0.0002% of its sales over the last year
“I have had good experiences with @PropSwap in the past but unfortunately for this ticket I’ve been owed $12,581 for coming up on two months,” X (formerly Twitter) user “Cat” wrote. “I paid $5,400 upfront to purchase the ticket when I bought it in December. Unfortunately after the ticket won, the seller does not want to pay the full amount of $38,292, and PropSwap doesn’t want to make up the difference.”
PropSwap explained in a statement posted on X on Tuesday that “Cat” did not receive the full payout because of a tax-related error in the listed payout.
X user @thecat123454 shared on Dec. 20, 2024, that they purchased a $5,400 Eagles Super Bowl future ticket at +509 odds.
Got the Eagles on @PropSwap 🦅 pic.twitter.com/MKgWr34EiG
— Cat (@thecat123454) December 21, 2024
A bet at that price would pay $38,292 if the Eagles went on to hoist the Lombardi Trophy. Lo and behold, the Birds flew high in their February matchup with the Kansas City Chiefs as they rioted their way to a 40-22 victory and the franchise’s second Super Bowl title.
However, the seller’s error overrepresented the actual payout by more than $12,000.
“The bet had original odds of > 300/1, so therefore, it had Federal Taxes and State Taxes withheld,” read the statement from PropSwap. “The seller was paid $25,711 by Caesars Palace. He sent those funds to us, of which we sent directly to The Cat123454," PropSwap explained.
“The seller did indeed incorrectly list the ticket for a pre-tax amount, not the past-tax amount… We believe it was an honest mistake."
Additional info on the Eagles bet. pic.twitter.com/Qd5Muvy0Tw
— PropSwap (@PropSwap) April 9, 2025
On Thursday, the company posted on X that it would send the winning bettor $6,000 "out of pocket" and would fully reimburse the ticket holder if PropSwap can "find 1,200 new users" in the next 24 hours.
We are putting up $6,000 guaranteed. Let’s see if we can get @thecat123454 the full balance by tomorrow. pic.twitter.com/7vf9AAxtuT
— PropSwap (@PropSwap) April 10, 2025
How does PropSwap work?
PropSwap’s statement clarified that it was not responsible for paying outstanding balances.
“Legally [the seller] is obligated to transmit to PropSwap the full collect amount for any bet he posts on our site,” read the statement. “It is important to remember that PropSwap is NOT a sportsbook, and we do NOT guarantee winnings.”
PropSwap essentially acts as an online ticket exchange between gamblers. The Las Vegas-based company allows customers to post and purchase betting slips that were already placed by the seller, in effect offering a cash-out to the seller and a live bet to the buyer.
Bettors use PropSwap to seek better odds than they would receive from legal online sportsbooks. However, the possibility of fraud is an ever-present danger since the platform is not responsible for covering unpaid winnings.
PropSwap stated only 0.0002% of ticket sales made on its site within the last 12 months were not paid in full. That translates to two cases of fraud per one million transactions.
Neither the company nor “Cat” provided an additional update on the situation. However, “Cat’s” recent posts were understandably negative. Some of those posts have been deleted.
