Social media star turned boxer Jake Paul has made a big bet on the sports betting industry with his startup Betr Holdings Inc. The company announced on March 6 that it raised $15 million in a new financing round led by venture capital firms Harmony Partners and 10X Capital, valuing Betr at $375 million as it prepares to march into the gambling industry.

Betr Sportsbook’s Winning Bet: Valued At $375 Million, Backed By Jake Paul

Betr, co-founded by Paul and Joey Levy, started operating in 2022 intending to shake up the sports betting market. Paul said at the time that existing sportsbooks needed influencers like him to attract users, claiming it was his turn to “take over from the dinosaurs.” Initially, Betr focused on building a media arm and fanbase while developing its betting products.

Betr’s timing aligns with U.S. sports betting’s rapid expansion as the industry reached nearly $11 billion in revenue in 2023, up 45% from the previous year, according to the American Gaming Association. As more states legalize sports betting, new players like Betr are eager to capitalize on the opportunity.

Earlier this year, Betr launched a real-money fantasy sports product in 24 states, circumventing some of the regulatory obstacles to traditional sports betting. The company is currently beta testing its sportsbook in Ohio and Virginia, with plans to launch the full product in states like Colorado, Kentucky, and Indiana before the NFL season starts in September.

Betr CEO Joey Levy has announced in an interview the company’s plans for nationwide presence: “We ultimately plan on being a nationwide sportsbook brand.” 

To accomplish this, they aim to establish the brand state by state. “We want to build profitable businesses in each state before adding incremental license fees, market access fees, and overall expenses,” Levy points out, adding that the fresh funding will be used for user acquisition, product development, and personnel expansion. 

The company has brought on senior staff, including former FanDuel executive Andrew Winchell to lead regulatory affairs, as it aims to enter more markets.

In addition to betting, Betr is also aiming to open an online casino with slots and table games like blackjack and roulette by the end of the year as they await regulatory approval in Pennsylvania. “This is going to be a very long game,” Levy said, forecasting that “the industry is going to be in the tens of billions of dollars in revenue by the end of the decade.”

With Jake Paul’s influencer backing and a $375 million valuation, Betr is making big moves in the growing sports betting industry. The impact of this influencer-led approach could shape the future of marketing in the sports betting sphere.