On paper, Betr sounded like a true disruptor in the sports betting space. The huge clout and popularity of Jake Paul, the focus on the growing field of micro-betting, a paradigm-shifting app, and a fresh approach to responsible gambling. People continue to believe Betr can be that game-changer.
The company recently completed a $35 million funding round that pushed its valuation to $300 million. Yet, when you look at the results so far, could they be better?
On the latest episode of iGaming Daily, sponsored by SBC Summit Barcelona, Jessica Welman is joined once again by Charlie Horner to go deeper into Betr’s latest funding round and how the company is currently performing.
Horner kicked off the podcast by discussing his initial thoughts about Betr as a project, and the role it could play in the sports betting landscape.
Horner stated: “I think it’s important to note what Betr was or how Betr packaged itself when it first came onto the scene and was announced. Obviously, Jake Paul, the media personality, social media star, and Joey Levy from former SimpleBet came together to essentially create a micro-betting product.
“I thought there was space for it to be a real disruptor, but as things developed, they moved into more products. Betr now has the media wing, and it seems like they’re doing a lot of different things. It’s a different product from what I initially thought it would be when they first launched.
“The messaging and the marketing ahead of the launch were very much focused on micro-betting. ‘This is how we’re going to do things.’ ‘We’re not like a regular sportsbook.’ ‘We are different.’ ‘This is why you should use us. We’re for the young people who are more interested in short-form content.’ It appears that it was a little unclear or misleading.”
Horner discussed Betr’s under performance in Ohio.
“I mean, the star power of Jake Paul is strong. If you look at his businesses elsewhere and his social media following, you would be led to believe that it would perform extraordinarily well,” Horner stated. “It hasn’t turned out to be like that. And, yeah, I was a little bit surprised. I think the technical glitches early on have got to play a part in that.”
Welmen added: “I certainly don’t think they were gonna come in and beat FanDuel and DraftKings in the first month, but if you were going to get that kind of star power together, I would’ve thought 0.5% of the market was somewhere that you were probably aiming for.”
Welmen questioned Jake Paul’s young audience, and how many of them are too young to be legally betting in the United States.
Horner responded: “I think it’s definitely something to consider, especially when you take into account that it’s 21 and over in the US, compared to 18 in the UK. Jake Paul has a lot of very young followers. I think that’s just part and parcel of being a star on YouTube and TikTok – you’re gonna attract younger people. With the really strong KYC processes and regulations that we have, those people can’t bet. But for the people who are 21 and over, they might already have an account with FanDuel or DraftKings, or other operators.”
“You also have to keep in mind that right now, the only followers of Jake Paul who can participate in betting are those who are in Ohio and Massachusetts, which I would argue is a smaller percentage than the percentage of teenagers that follow him.” added Welmen
The team rounded off the podcast by discussing what the future looks like for Betr if they obtain licences in other states and whether the upcoming football season will see more products being rolled out by the company.
To read more on the topics discussed on today’s podcast, click on the following links:
https://sbcamericas.com/2023/07/18/massachusetts-june-2023-sportsbook-revenue-betr/
https://sbcamericas.com/2023/06/27/betr-series-a2-valuation-300-million/
