Wagr, the social sports betting app, launched in Tennessee. The app took to Twitter to announce the news and encouraged residents to give the platform a try. With this launch, Wagr helps Tennessee become the first US state in which a peer-to-peer betting platform is available.
Wagr is the First Social Betting App To Have a License in the US
The main target audience of Wagr is casual bettors that do not have extensive knowledge of wagering. It was founded in 2020 and became the first social betting platform to hold a license. Moreover, it is led by the co-founder of Reddit, Alexis Ohanian.
While speaking to Bloomberg, Ohanian said that the app is about friends wagering between themselves on various sports events. The money currently is being resolved via Venmo or Cash App payments each Monday, but Ohanian is confident that this field can be improved.
It serves as a middleman between various members of the community, whether that are friends, family, or community members that don’t know each other. The app is launching with point spreads and may add prop bets and moneyline bets in the coming period. Wagr is the ninth official sportsbook to be launched in Tennessee and can prove to be a decent contributor to the already booming industry. Just a reminder, Tennessee sportsbooks recently hit a new record in terms of revenue.
Initially, Wagr received upwards of $4 million in seed funding from the likes of Ohanian, Justin Mateen (Tinder co-founder), Joe Baker (founder of Ole Smoky), Greycroft, Pear Ventures, and more. Some details state that Ohanian is among the second seed of investors in a $12 seeding fund, which is also supported by Kraft Group and Blitzer Sports & Entertainment. Kraft Group owns New England Revolution and the New York Patriots, while Blitzer Sports & Entertainment owns the New Jersey Devils and the Philadelphia 76ers.
A 5% Fee Is Charged on Every Wager
Logically, the app needs to make some type of profit. That profit comes in a form of a 5% fee that is charged on every wager. If players cannot find friends/family to bet with, the app will search for a match and connect them.
Ohanian stated that it’s in the company’s interest to have a healthy approach to gambling and that is why it is considering enforcing a $500 cap on a single bet. Players will also be able to set their own restrictions.
The CEO of Wagr, Mario Malavé, shared some encouraging words in a press release. He said that there are many sports fans who find current betting systems complex for various reasons. Wagr is set to provide them with a better experience and connect with sports communities.
Malavé also spoke to Bloomberg about the process of betting with Wagr and stated that the app strips it to “the bare essentials.” All bettors have to do is pick a team and decide which one they want to bet against.