- Sports betting and gambling companies have raised $150 million from VCs so far in 2023, according to PitchBook data.
- Digital-lottery company Jackpot.com leads all startups in the sector with $42 million in new funding.
- The list includes sports betting, casino technology, and even a horse DNA company.
The flow of funding to US sports betting and online gambling startups has slowed in the last two years, but companies like Jackpot.com and the Joey Levy and Jake Paul-backed betting platform Betr are still attracting significant investment, according to new PitchBook data.
According to PitchBook, which tracked 25 deals during that time period, US sports betting and gambling startups raised approximately $150 million in venture capital funding through mid-August of this year.
According to PitchBook, the sector disclosed $160.3 million in VC deals during the first half of 2022, and $186.2 million during the same period in 2021.
Some venture capital firms have continued to invest in the sector. Eberg Capital, founded by Roger Ehrenberg, invested in three of the startups that received funding this year, while Arctos Sports Partners, Bettor Capital, and Courtside Ventures also participated.
According to PitchBook, the following are the top 11 companies that have received the most funding in 2023 as of mid-August:
- $42 million for Jackpot.com. The company closed an extension to its Series A round in early January from a large number of investors, including teams like the Dallas Cowboys and the New York Yankees, as well as owners of several other teams and players like James Harden and Joel Embiid. Users can purchase official digital lottery tickets through the website.
- Betr is worth $35 million. The online sports betting app cofounded by internet sensation Jake Paul and gambling entrepreneur Joey Levy completed a Series A round extension in late June. Betr, which was valued at around $300 million in that round, is the highest-valued company on this list and the only one in the triple digits.
- Acres Manufacturing ($29.6 million). The VC investment was closed by the more than 50-year-old casino technology and data company. Acres announced its Ticket In Bonus Out function in March, calling it the “first feature upgrade to casino ticket redemption technology” in decades.
4 – tied) Champions Round — $10 million. Champions Round, a content-creator-focused fantasy sports platform, made a splash earlier this year when it announced a $7 million Series A round, bringing its total funding to $10 million.
4 – tied) Prophet Exchange — $10 million. In April, Prophet Exchange, a peer-to-peer betting exchange that allows users to bet against one another rather than the house, announced its most recent fundraising round.
- Boom Entertainment received $5.9 million. Boom Entertainment, the second-highest-valued startup on this list, closed a Series B round led by Oyster Ventures and Touchdown Ventures. The casino and sportsbook technology company provides over ten different gambling games.
- Kero Sports is worth $5 million. A third seed round for the in-game betting platform was supported by Eberg Capital, IA Sports Ventures, and Ikigai Ventures. Kero Sports provides gambling and free-to-play gaming products within sports apps, as well as collaboration with professional sports teams.
- $2.5 million for PlayerProfiler. This company specializes in fantasy football. PlayerProfiler offers advanced stats and analytics, as well as daily livestreams and a podcast, as well as fantasy news and advice from writers. PlayerProfile has completed its seed round.
- Etalon Diagnostics received $2.2 million. Customers can use the horse DNA-testing company’s “build-a-horse” tool to select genetic traits for a foal and then choose from potential mares and stallions with corresponding characteristics. In January, it completed its later-stage round.
9 – tied) Alt Sports Data — 2 million. The sports-betting-data company’s second seed round was led by Eberg Capital and Trinity West Ventures.
9 – tied) Oddsworks — $2 million. Oddsworks, a gaming company with over 100 games for online and land-based casinos, has raised seed funding.