US business Wagr has created history by becoming the first peer-to-peer betting platform to launch in the US. The iOS app went live on Thursday in the Tennessee market, with an Android app set to launch in the coming weeks. The Nashville-based operator began a private beta test last month with 60 users.
Wagr took to Twitter to announce the launch:
Wagr is Tennessee’s ninth operator to receive a sports betting license and the first in the region to allow customers to bet against one another. Users of the platform can challenge their fellow bettors, as well as engage with each other through the social feed.
Each wager carries a 5% flat transaction fee
The operator looks after the transactions and keeps track of players’ results. Each wager carries a 5% flat transaction fee. Wagr has a partnership with leading sports data firm Sportradar, with the firm providing consensus betting lines for each game.
A unique type of offering
Currently, only pre-game point spreads are available to Wagr app users. However, the operator plans to add money lines, prop betting, and live betting in the next few months. According to Wagr, the app includes a $500 max bet to ensure that people are not betting excessively.
Wagr CEO Mario Malavé has welcomed the Tennessee launch. He said a lot of sports fans can find current sports betting products intimidating, complex, and sometimes predatory. He commented: “We built Wagr to give them a better experience, one that engages them in a more personal way and connects them with the sports communities around them.”
A successful funding round
Wagr has also announced that it has finished its Series A funding round. It generated $12m and attracted some interesting investors such as the Kraft Group and Pear Ventures. The former is the company founded by New England Patriots owner Robert Kraft, while Pear Venture is Reddit founder Alexis Ohanian’s fund.
According to Wagr, the $12m will help to accelerate product development, expand the team, as well as cover licensing fees and launch costs across various markets. The sports betting company’s staff quadrupled in size last year.