A new platform is aiming to shake this up in the sports trading industry with the pending launch of a performance-based marketplace. InPlay Global, Inc. is gearing up for its potential market debut as the “first” provider of regulated securities based on the real-time performances of college and pro sports teams. The platform hired former Citadel Securities and MIAX Exchange executive Troy […]
A new platform is aiming to shake this up in the sports trading industry with the pending launch of a performance-based marketplace.
InPlay Global, Inc. is gearing up for its potential market debut as the “first” provider of regulated securities based on the real-time performances of college and pro sports teams.
The platform hired former Citadel Securities and MIAX Exchange executive Troy Kane as president and COO. InPlay Global, led by CEO Edwin Johnson, is preparing to provide its users with the ability to trade securities tied to performances similar to an index fund, an exchange-traded fund that aims to emulate the performance of a market index. InPlay Global plans to offer trading through its alternative trading system, InPlay Markets, pending SEC and Financial Industry Regulatory Authority (FINRA) approvals.
“Financial markets price commodities, equities, and risk, but they have never priced real-world competitive performance. InPlay is changing that by introducing a regulated market structure where performance can be evaluated, traded, and risk-managed transparently,” said Johnson. “We are not building a gaming product; we are building a market.”
InPlay Global wants to offer U.S. sports fans the chance to trade securities with prices tied to wins and losses over the duration of an entire season. InPlay Markets is pending SEC approval under SEC Regulation A, Tier 2. The standard provides InPlay Markets with an exemption from SEC registration and the ability to raise a maximum of $75 million from investors in 12 months while providing semi-annual and annual financial reports. Under Regulation A, Tier 2, the platform is also required to report on its final offering status.
Regulation A, Tier 1, allows a firm to raise a maximum of $20 million in 12 months.
InPlay Markets also needs FINRA approval to provide its performance-based securities.
The SEC has oversight of FINRA, with firms that want to conduct securities business required to meet FINRA’s membership requirements. InPlay Markets is mandated to provide FINRA with its proposed business and operational systems for review. The review will allow FINRA to determine if InPlay Markets can adhere to SEC and FINRA requirements.
InPlay Markets would also be required to provide periodic audit reports, provide continuing education for staff and be subject to “frequent inspections” by FINRA staff.
If approved, InPlay Market’s “performance securities” will be bought and sold on an open market starting in 2026 using public data. According to a Bloomberg report, it plans to provide securities for the NHL and the NBA, with plans to provide trading for the FIFA World Cup despite not having yet secured licensing deals with the leagues and soccer competition. InPlay Markets is also considering launching securities for individual players.
“Performance Securities apply market discipline to something universal, competition,” said Kane. “This is not betting, and it isn’t a synthetic stock game. It’s a regulated financial marketplace designed around transparent price formation, neutral market operations and unified liquidity.”
InPlay Global considers itself not to be a “sportsbook, prediction market or gaming platform” but is disrupting a sports-based trading industry that is under scrutiny.
InPlay Markets doesn’t consider itself a sportsbook or prediction market as it plans to offer securities instead of being a designated contract market and swaps provider, which are regulated by the Commodity Futures Trading Commission (CFTC).
Earlier this month, financial firm Kalshi sued the Ohio Casino Control Commission (OCCC) and the state’s Attorney General for “threatening to prohibit trading of event contracts.” Kalshi is also taking issue with a warning of potential license revocation for entities that partner with Kalshi, even if the deal does not include operations in Ohio.
The OCCC sent Kalshi, Robinhood and Crypto.com cease and desist orders for offering sports event contracts, leading to Kalshi’s lawsuit. Kalshi is arguing that it can offer sports event contracts under the Commodity Exchange Act, which grants the CFTC exclusive authority to oversee event contracts.
Kalshi is seeking an injunction to keep its sports event contracts alive in Ohio. The platform is also facing a lawsuit in Massachusetts over its sports event contracts, while its status in Maryland is in limbo as it appeals a denied preliminary injunction in the state.
Last week, the Pennsylvania Gaming Control Board (PGCB) sent a letter to members of Congress voicing concerns about prediction markets and sports event contracts.
The PGCB believes sports event contracts pose a threat to “Pennsylvania’s long-established regulatory framework for gaming.”