Wagr, a social media sports betting platform, has officially launched in Tennessee as the state’s ninth sportsbook.
The launch follows Wagr closing on $12 million in Series A funding from a host of investors, including the owners of the NFL’s New England Patriots, the NBA’s Philadelphia 76ers, and the NHL’s New Jersey Devils. It also precedes a pivotal NFL matchup at home between the Cincinnati Bengals and the Tennessee Titans.
Bonus Bets Expire in 7 Days. One New Customer Offer Only. Additional Terms Apply.
- Quality welcome offer
- Some of the best promos
- Variety of betting markets
On Thursday, January 20, Nashville-based Wagr tweeted that it was live and taking bets in the Volunteer State.
The platform is very different from other online sportsbooks. Instead of betting against the house, bettors instead make wagers against each other. Wagr makes money on the enterprise by levying a 5% fee on all bets.
Tennessee’s previous gaming regulator, the Tennessee Education Lottery (TEL), awarded a license to Wagr in August 2021. According to a blog post by Wagr co-founder and CEO Mario Malave in June 2021, the company secured $4 million in seed money from several sources in the run-up to securing a license from TEL. Malave said those original investors included:
- Seven Seven Six, a venture capital firm founded by Reddit co-founder Alexis Ohanian
- venture capital firms Greycroft and Pear VC
- Tinder co-founder Justin Mateen
- Brad Martin, retired CEO of Saks Incorporated
- According to a report by The Tennessean, the Manning brothers — NFL icons — were also early investors in Wagr
According to Forbes, Wagr’s $12 million in Series A funding was secured Thursday through cooperation with Greycroft, Pear VC, Seven Seven Six, and another venture capital firm, BITKRAFT Ventures. The investment was also backed by:
- The Kraft Group, which owns the Patriots and the New England Revolution, a Major League Soccer team
- Harris Blitzer Sports & Entertainment (HBSE), owner of the 76ers and Devils
One of the toughest things as a startup trying to innovate in this space is it’s a chicken and egg problem,” Malave told Forbes. “You need a lot of money in order to access the licensing and pay for the fees and spin up the entire legal, compliance, and regulatory operations you need to even be considered for one of the licenses.”
Malave, who co-founded Wagr with fellow Harvard Business School classmate Eliana Eskinazi, added that Wagr wanted to offer a product that didn’t require previous betting experience and avoided “confusing betting jargon. It’s about betting against others in your community. It doesn’t make you face off against the casino.”
Wagr Faces Tough Competition in TN
Wagr joins a crowded field of sportsbooks — BetMGM, DraftKings, FanDuel, and Nashville-based startup Action 24/7, all went live when the market first opened on November 1, 2020. Four additional operators — William Hill, TwinSpires, WynnBET, and Barstool, launched at various times in 2021. William Hill rebranded as Caesars that August.
Mary Beth Thomas, Executive Director of the Sports Wagering Advisory Council (SWAC), told her colleagues at a SWAC meeting earlier this month that six additional sportsbooks — including Bally Bet, Fubo, Gamewise, Superbook, and ZenSports — had submitted applications for licensure.
Thomas told US Gaming Review on January 12 that the sixth sportsbook to submit an application was PointsBet. The identity of the sixth book was unknown at the time of the SWAC meeting because the application was in transit via courier.
SWAC assumed oversight of the state’s gaming regimen from TEL on January 1, 2022. The regulator reported that sportsbooks made a record $36.9 million in gross revenue in November 2021.
