Wagr, the social sports betting application, launched in Tennessee. The app took to Twitter to announce the news and encouraged residents to try out the platform. 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 be licensed in the United States
Wagr’s primary target audience is casual bettors who do not have extensive betting knowledge. It was founded in 2020 and became the first licensed social betting platform. Plus, it’s run by Reddit co-founder Alexis Ohanian.
Speaking to Bloomberg, Ohanian said the app was about friends betting with each other on various sporting events. Money is currently resolved via Venmo or Cash App payments every Monday, but Ohanian is confident that this area can be improved.
It acts as an intermediary between different members of the community, whether they are friends, family members or members of the community who do not know each other. The app is launched with point spreads and can add prop bets and finance line bets in the coming period. Wagr is the ninth official bookmaker to launch in Tennessee and may prove to be a decent contributor to the already booming industry. As a reminder, sports betting in Tennessee recently hit a new high in revenue.
Initially, Wagr received over $4 million in seed funding from Ohanian, Justin Mateen (co-founder of Tinder), Joe Baker (founder of Ole Smoky), Greycroft, Pear Ventures, and more. . Some details point to Ohanian being part of the second seed of investors in a $12 seed fund, which is also backed by Kraft Group and Blitzer Sports & Entertainment. Kraft Group owns New England Revolution and New York Patriots, while Blitzer Sports & Entertainment owns the New Jersey Devils and Philadelphia 76ers.
A 5% fee is charged on each bet
Logically, the application must generate some type of profit. This profit comes in the form of a 5% commission that is charged on every bet. If players cannot find friends or family to bet with, the app will search for a match and connect them.
Ohanian said it’s in the company’s interest to have a healthy approach to gambling and that’s why it’s considering imposing a $500 cap on a single bet. Players will also be able to set their own restrictions.
Wagr CEO Mario Malavé shared some encouraging words in a press release. He said many sports fans find today’s betting systems complex for a variety of reasons. Wagr is ready to give them a better experience and connect with sports communities.
Malavé also spoke to Bloomberg about the betting process with Wagr and said the app stripped him down to “the bare essentials.” All punters have to do is pick a team and decide which one they want to bet against.