4Cx launches P2P sweepstakes, adds Paris Smith to cap table

Zack Panos anticipates a certain amount of drama. A Chicago-based sports betting tech entrepreneur launching peer-to-peer sweepstakes in the United States would be wise to prepare for that likelihood.

But his overriding sense of anticipation is rooted in finally flipping the proverbial switch for 4Cx. 

Speaking exclusively with Betting Startups on launch day, Panos believes that in a US sports betting marketplace that is skewed against players - particularly the sharps - a little drama will be worth the endeavor.

“What we want to do is empower people who take this seriously and have been just not allowed to participate in this US betting market,” he said. “We kind of see sweepstakes right now as a way to empower those.”

4Cx is the US-facing counterpart to 4casters, another betting exchange owned and operated by 4C Software, a wagering platform Panos co-founded. The company recently brought former Pinnacle CEO Paris Smith onboard as an investor and advisor.

4casters boasted $375 million in matched volume last year on its invitation-only private betting exchange.

“We always went that route because we couldn't really get in the US,” Panos explained. “But recently people started doing these sweepstakes exchanges in the US and it kind of was like, ‘You know, either get on the train or jump off.’

“It was a very existential moment where it was like, ‘All right, we've been waiting for this forever. We have an opportunity. Are we just going to let someone else do it?’ It was like we didn’t have a choice. We're doing this. So it's, it's exciting, man.”

4Cx.io is now live in 33 US states, with its social media-based marketing campaign reaching out to potential bettors - make that predictors - to build a user database. Among the targeted states is California and Texas, where traditional sports betting is not legal.

That doesn’t mean there isn’t demand there, Panos said.

“It’s about the user,” Panos said. “And I think being able to engage with these sports is something people want. Once that box has been opened, like with Daily Fantasy Sports, they want this product. No matter what the government does is independent of demand for this and I see us as serving this demand in a way that is legal under the state laws.”

Panos thinks there will be “widespread change” on how sweepstakes sites are ultimately viewed and regulated but stresses there is also a need to consider customers.

“Everything's kind of really shifted against the player,” he said. “And I think these types of platforms that empower the player that don't limit winning players, I think that's really needed right now.”

4Cx is free to play and reminiscent of other betting exchanges, but allows users to purchase gold coins for monetized play.

“That's the thing of value someone might want to buy in case they want to show their prediction skills,” he explained. “But then along with that, you get sweepstakes tokens on some of the purchases. We do have an ability for users to buy gold coins and get bonus sweepstakes cash with that.”

And despite mounting pushback against sweepstakes casinos in the US, Panos sees 4Cx as a legal option for both underserved players and sharps who are being unfairly limited by massive gambling companies.

“I think ultimately, it's legal,” Panos explained. “Obviously, there's a reason why people have a problem with it. And it's this weird kind of inflection point where something is going to have to change eventually.

“But for now, it’s legal. It’s just point-blank legal. If you have a problem with that, there has to be a structural change. Because otherwise, we're going to get phased out if we don’t do something and let all these other people do it.”

Ultimately, he said, some drama might be good for business and proof of intent for 4Cx.

“We're going after the same type of customers of a few other competitors,” he said. “I think wherever you’re a new entrant going after someone else’s customers there should be some drama. That’s good for us if there’s drama at some level because it gets our name out.

I think some chaos on the timeline helps new entrants get their name out. So, yeah, we’re just going to go brick by brick, get it out there, get some feedback, make some mistakes, figure it out.”

4Cx is now live in 30+ states at https://4cx.io/