Yahoo has finalized the acquisition of sports betting platform Wagr. It was the first betting operator in the North American market to obtain a license in the country and raised US$ 16 million, with investors that include the ownership groups of the New England Patriots (NFL) and the Philadelphia 76ers (NBA).
Founded by two Harvard students, the company bills itself as a “social betting” app that lets friends and communities place bets against each other.
As Wagr collects bets from both customers and passes on the winnings, it rules out comparison with other services in the same industry, as users are not transferring money to each other. However, the platform requires a 5% transaction fee on each bet, so it doesn’t matter which side wins.
“Yahoo Sports provides us with a stage to build products that will reach millions of loyal fans who have been connecting for sports through fantasy gaming for decades. Yahoo’s unique combination of scale and engagement creates opportunities for virtuous product cycles between sports media and gaming,” said Mario Malavé, one of the founders.
“Joining Yahoo allows us to continue fulfilling our mission of connecting fandom to social gaming, elevating our ability to execute through expanded resources, new partnerships and technology capabilities.”
Wagr will be fully integrated into Yahoo Sports
Under the agreed terms, Wagr will be fully integrated into Yahoo Sports, which has grown into one of North America’s leading fantasy sports operators.
“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 groups of friends together through competition and camaraderie around the sports they love.” -Senior President of Yahoo Sports.
“The acquisition of Wagr creates an immediate opportunity for us to expand into new group formats that can take engagement and friendly competition to the next level,” concluded Shaw.