Yahoo has announced that it has acquired peer-to-peer sports betting app Wagr, the first social sports betting operator to receive a license in the United States.
Wagr differs from conventional sportsbooks in that it doesn’t compete against bettors. Instead, its customers make predictions and other users bet against their predictions. Wagr’s profit model relies on charging a 5% fee on all of those wagers. The model has been a successful one that has attracted investors such as Seven Seven Six, Greycroft, Pear VC, the Kraft Group, Harris Blitzer Sports & Entertainment, and BITKRAFT Ventures.
Speaking of the deal Jim Lanzone, CEO of Yahoo said:
“The acquisition of Wagr is an exciting step in the development of the next generation of Yahoo Sports’ gaming portfolio. Wagr stands out for their innovative emphasis on community and social engagement in sports gaming, which aligns perfectly with the Yahoo award-winning fantasy platform that has brought tens of millions of fans together around their love of sports for over 20 years.”
Jon Shaw, SVP of Yahoo Sports went on to add:
“We are incredibly excited to welcome Wagr to the Yahoo Sports family. While we know our fantasy leagues increase fan engagement and give people something to root for, the real value is in keeping friend groups together through competition and camaraderie around the sports they love. Acquiring Wagr creates an immediate opportunity for us to expand into new group formats that can take engagement and friendly competition to the next level.”
Mario Malavé, co-founder and CEO of Wagr added:
“Yahoo Sports offers us a stage to build products that will reach millions of loyal fans that have connected over fantasy sports for decades. The unique combination of Yahoo’s scale and engagement creates opportunities for virtuous product loops between sports media and gaming. Joining Yahoo allows us to continue delivering on our mission to connect fandom to social gaming while elevating our ability to execute through expanded resources, new partnerships and technological capabilities.”
Previously available in the state of Tennessee, Wagr is currently offline but will be fully integrated into Yahoo Sports once the acquisition deal is complete.
No financial details of the deal have yet been released.
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.