CEO of Betr, Levy, Remains Optimistic About Future Expansion, Despite Company's Decision to Withdraw Operations in Massachusetts
Joey Levy's first week of March was a whirlwind, marked by a high-profile industry event and a significant financing round for his company, Betr.
Last Wednesday, Levy participated in an All-Star panel in Manhattan where he and other industry leaders discussed the future of sports betting. The appearance came just an hour after Betr announced a new round of financing that valued the company at $375 million.
The financing round could help Betr, which has opted to focus on long-term growth over customer acquisition, address its recent market share struggles. The company had less than 0.1% market share in Massachusetts before pulling out of the state last month.
The week took another unexpected turn when Mike Tyson announced plans to fight Jake Paul this July. Paul, a YouTube influencer and co-founder of Betr, may have quickly overshadowed the financing news.
When asked by moderator Contessa Brewer of CNBC if Betr was open to being acquired, Levy indicated that the company is building Betr for the long haul and focusing on profitable growth, not quick expansion.
Levy and Paul met several years ago, and Simplebet – a company Levy previously co-founded – now powers the technology that enables micro-betting platforms like Betr to thrive. Simplebet uses artificial intelligence and other cutting-edge technologies, such as machine learning and large language models, to offer odds on a variety of rapid betting props.
When Paul announced the launch of Betr – a micro-betting and media company – in August, he claimed the startup had received $50 million in Series-A funding. The funding round last week includes investments from Harmony Partners and 10X Capital.
While Betr's technology may be more advanced than some mega-cap incumbents in the space, the company faces challenges in its quest for market share. Unlike industry leaders, Betr has avoided "chasing handle" and instead opted to acquire customers through vehicles like TikTok and Paul's celebrity appeal.
Whether Paul's celebrity status has led to adequate conversion rates remains to be seen. Hype Auditor, a website that tracks activity on Instagram, pegged Paul's engagement rate at 1.61% on the social networking site. The number of Paul's followers who have placed a real-money wager on Betr remains unclear.
Betr generated a reasonably high hold in Massachusetts at 7.89%, but lagged in handle, with the company handling $2.93 million in 10 months of operations. In comparison, competitor DraftKings reported $311.4 million in January handle, making it a formidable competitor in the market.
Following its departure from Massachusetts, Betr has set its sights on a host of new states, having secured sports betting licensing partnerships in Colorado, Kentucky, and Pennsylvania. The company is currently operational in Virginia's and Ohio's sports betting markets and plans to launch an online casino by the end of 2024, aiming to generate $100 million in annual revenue.
Regarding the upcoming Tyson-Paul event, Betr is not likely to offer real-money wagers on the fight as attempting to take action on a co-founder would likely draw regulatory scrutiny. Even as Betr seeks to grow its market share, investors will eventually expect a return on their investment.
Chris Altruda contributed to this story [Link to Source]
- Joey Levy participated in an All-Star panel discussion on the future of sports betting, highlighting his company, Betr's, involvement in the industry.
- The financing round last week for Betr, which valued the company at $375 million, could help address its recent market share struggles.
- Mike Tyson's announcement of plans to fight Jake Paul this July unexpectedly overshadowed the financing news for Betr, as Paul is a co-founder of the company.
- When asked about potential acquisition of Betr, Levy stated that the company is focused on long-term growth and profitable expansion, not on quick expansion.
- Betr's technology, powered by Simplebet and utilizing artificial intelligence and other cutting-edge technologies, offers odds on a variety of rapid betting props, making it a formidable competitor in the market despite challenges in acquiring market share.
