Which monetary large simply purchased a stake in a US sports activities betting firm?
Giant in financial trading Susquehanna has acquired a minority stake in London-based sports betting company Markets.
The parties did not provide financial details of the deal.
The investment marks that Series B Financing round for smarkets.
Where does Susquehanna’s cash go?
Smarkets said it would use the money to launch its SBK Sports betting app in the USA.
SBK is live in right now Colorado, and expected in. to start Indiana shortly.
Smarkets CEO Jason comforts said the funding would help Smarkets secure more market access deals.
The company has its eye on an additional state or two in the near future. But first, Trost said, the company will focus on demonstrating its product and operational capabilities rather than doing a full roll out.
Who is Susquehanna?
The investment comes from Susquehanna’s venture capital arm Susquehanna Growth Capitalna (SGE.) The Philadelphia-based fund specializes in consumer-oriented fintechs such as brokerage apps EToro.
Meanwhile, Parent company Susquehanna is a trading giant in traditional financial markets, but with some gambling DNA.
Forbes recently named Susquehanna as a co-founder Jeff Yass how “possibly the greatest player on Wall Street“Thanks to his poker and sports handicap successes.
The company also operates a Dublin-based sports retail unit called Nellie Analytics.
Ideal partner for smarkets
That combination of finance and gambling makes Susquehanna the ideal partner for smarkets, said Trost.
“Jeff Yass and the founders are super optimistic about bringing fintech into sports betting,” said Trost.
“Jeff is one of the few people who shares the same vision as us. Sports betting is going to be a huge financial market at some point. So the sooner you get involved, the better. “
Challenging US sports betting status quo
Trost himself is a former financial trader. As a result, he built Smarkets’ first product – a betting exchange – taking financial principles into account.
This exchange will eventually launch in the United States. However, the company will initially focus on the SBK sports betting app as it has more mainstream appeal, Trost said.
“We have always been guided by our vision to lock in bets with the best prices and products,” added Trost. “Like us, SGE is looking forward to questioning the status quo. This is a great endorsement of our technology and will allow us to continue to turn the industry upside down by offering bets as close to fair value as possible. “
Demand for low vig
Of course, Smarkets is far from the only company trying to fill a perceived niche in the US low-value sports betting market.
Circa sport tries to serve this part of the market, as does the upcoming US betting exchange Sports retail. However, Trost argued that the segment was still underserved.
“I don’t think other operators have built for this model,” said Trost. “Big betting companies don’t think about the market like we do. From an industry perspective, Susquehanna’s commitment is a big deal. You have the financial means to play here. “