Reddit co-founder invests in app combining online gambling and social media
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Former Reddit co-founder Alexis Ohanian is investing $4 million USD in seed-funding in an app named Wagr that looks to blend social media with sports betting, according to Bloomberg.
Wagr was founded in April 2020 and it is a gambling platform that enables fans to bet with friends instead of the typical virtual casino experience. The app places an emphasis on users not needing previous betting experience, which could expand the market by encouraging casual wagers on the platform. Ohanian is making the investment through his venture capital firm, named Seven Seven Six.
“It’s about productizing what already goes down in everyone’s group chat, which is wagers between friends about sporting outcomes,” said Ohanian. “Right now the way these get resolved is through a Cash App payment or a Venmo payment on Monday, and surely we can do better.”
When Wagr launches it will offer major sports betting, in which gamblers will have the ability to take one side of a point spread and bet with a friend. The company will look to capture some of the market share currently occupied by companies such as DraftKings and FanDuel, while also enticing more casual gamblers. In the future, Wagr intends to offer prop bets and money-line wagers.
According to bookies.com, prop bets are bets that are not made on the outcome of a game but rather on one player or a single outcome. SportsHandle defines a money-line bet as the simplest bet possible, where a bet is only placed on one team or player to win.
Wagr intends to launch the app with point spreads because they “lend themselves very well to the peer-to-peer model because they’re 50/50,” said Mario Malave, the Wagr founder and CEO.
If a user does not have a friend to bet with, the platform will be able to match that player with another in their state. Wagr will also place a $500 USD upper limit for single bets and will provide players with the ability to restrict their use of the app.
“Ultimately, it’s to create a healthier approach to gambling,” said Ohanian. “It’s frankly the perfect time for a business like Wagr to come in and want to build something that really disrupts the way that sports betting has traditionally been done.”
Wager expects to charge fees similar to what typical casinos charge and also has applied for licenses to operate in both Tennessee and Virginia. The Wagr ethos is one that believes consumers will pay for access to a single platform that provides odds, processes payments, and fosters communication between players.
“Our app really strips down the betting experience to the bare essentials — we’re launching with point-spread bets only,” said Malave. “From a user’s perspective, all you have to do is pick a team, decide who you want to bet against, and select how much you want to wager.”
Wagr also received funding from Justin Mateen, a co-founder of Tinder; Brad Martin, the former chairman and CEO of Saks; Pear Ventures and Greycroft. Former CEO of Caesars Entertainment, Gary Loveman, will also act as an advisor to Wagr.
Currently in it is illegal in Canada to operate an online casino without a licence, however, it is legal for Canadians to gamble online at offshore casinos, according to Canadian Casinos.
