Reddit Founder Invests In Growing Sports Betting Market

    • Wagr is raising $4 million.
    • The seed-funding round is led by Reddit cofounder Alexis Ohanian.

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Wagr, an app for casual sports bets among friends, is raising $4 million, with Reddit co-founder and investor Alexis Ohanian leading the charge, according to Bloomberg. 

Ohanian is investing through his VC firm, Seven Seven Six. The seed-funding round includes contributions from Tinder co-founder Justin Mateen and former Saks Inc. chairman and CEO Brad Martin. 

More sports betting platforms are emerging as the $30 billion U.S. online sports betting market expands.

Wagr is part of a rising wave of small but formidable sports betting and fantasy platforms bringing in the money.

  • Simplebet, a micro-betting startup, raised $15 million in March. Investors include tennis legend Andre Agassi and 76ers co-owner David Blitzer. 
  • Underdog Fantasy raised $10 million in May. The round included investments from Mark Cuban and Kevin Durant. 

Wagr focuses on simplifying betting for casuals who may not be comfortable in casinos. If app users don’t have a friend to take a bet, they’ll be matched with someone in their state who also uses the platform. 

It’s about productizing what already goes down in everyone’s group chat,” Ohanian told Bloomberg. “Right now, the way these get resolved is through a Cash App payment or a Venmo payment, and surely we can do better.”