Tennessee has become the first state to offer Wagr, a peer-to-peer betting platform that allows customers to bet against other customers. The ninth licensed sportsbook operator in the state, Wagr is the first in the U.S. to receive a license for social betting. Based in Nashville, the company launched a private beta test in December. It charges a 5 percent flat transaction fee per wager.
Chief Executive Mario Malavé said, “Although sports betting is undoubtedly one of the largest consumer markets to open up in recent U.S. history, we’re still in the very early innings of product development. There are many fans who love sports, but for various reasons find current betting products complex, intimidating or, in some cases, even predatory. We built Wagr to give them a better experience, one that engages them in a more personal way and connects them with the sports communities around them.”
The company raised $12 million, allowing it to “accelerate product development, continue expanding its team (which quadrupled during 2021), and cover licensing and launch costs in multiple markets.” Investors include New England Patriots owner Robert Kraft’s Kraft Group; Pear Ventures, the fund of Reddit founder Alexis Ohanian; BITKRAFT Ventures; Greycroft; HBSE Ventures, a venture fund created by Harris Blitzer Sports & Entertainment, which includes the Philadelphia 76ers and New Jersey Devils; and Seven Seven Six.
BITKRAFT Ventures Partner Moritz Baier-Lentz said, “Sports betting is a huge and growing market, but it’s still missing the mark for a sizable part of the sports audience. Today’s app experiences are clunky, complex and primarily marketed to men, where Wagr offers a unique product that’s social, intuitive and transparent. We’ve seen community-centric financial products gain huge popularity in recent years, and we believe sports betting could be the next market to benefit from an experience that’s truly designed for fans, not to maximize profits for the house.”
