The esports betting start-up FansUnite has hailed the over-subscription for its recent warrant offering as further validation of its eSports and sports betting plans.
FansUnite has raised $13.4m from a placement of transferable special warrants on the back of investor enthusiasm or its eSports and sports betting plans.
CEO Scott Burton hailed the fund raising, saying it provided “further validation” for investor enthusiasm in the gaming sector.
FansUnite has developed its own platform for both eSports and sports betting. In May last year it bought out the online bookmaker McBookie for C$2.2m.
It followed up this deal with the acquisition of eSports specialist Askott Entertainment, which included a consumer-facing proposition alongside a sports betting platform.
It subsequently signed a deal with Pinnacle Solutions for the supply of esports data and odds to its platform.
FansUnite hailed a first in December when it announced a deal to provide the first eSports-dedicated sportsbook in the U.S. to partner GameCo in Colorado.
It will see FansUnite providing the platform to US Bookmaking via its own partnership with the Sky Ute Casino.
Burton said at the time that FansUnite was eager to establish a larger presence in the U.S.
Blaine Graboyes, Co-Founder and CEO of GameCo, said the partnership marked a “new era for GameCo”.
“We will be the frontrunners in capturing revenue from an untouched segment in the U.S. online casino market.
“We require the most innovative technology that will provide a strong backbone for our betting systems.
“We are pleased that FansUnite is able to fulfil that need with the Chameleon iGaming solutions.”
Colorado is highly competitive with well over a dozen competitors fighting it out in what remains a relatively lowly state in terms of revenue opportunities.
In terms of gaming friendliness Colorado is third on the Wedge Index.
FansUnite originally sought to raise $5m when it announced a warrant sale. Burton said there was “overwhelming demand” for the investment.
The FansUnite sportsbook is currently in beta operations. It relies on Sportradar’s odds-making, bet resolution and risk management system.
It also intends to offer the FansUnite offering on a bookmaking-as-a-service basis.
This includes offering front-end and back-end software solutions for gambling companies, including Know Your Customer (KYC) and Anti-Money Laundering (AML) services. It will also offer a payment gateway for cryptocurrencies.
The next state likely to feature eSports betting is New Jersey. Esports Entertainment has already applied for a license there and is awaiting the OK to launch.
The Esports Entertainment offering will be mixture of eSports and traditional sports betting.