The online gambling industry is going from strength to strength, with some analysts saying it could exceed $160 billion in value by 2026.
This has led to a plethora of startups and entrepreneurs seeking to open their own gambling platforms, apps, or ancillary companies. With this surge has come an increase in different types of funding. Typically, online gambling enterprises were funded by the owners and teams of private investors, but now different forms of funding are emerging.
In recent years, we have witnessed a number of online gambling companies benefiting from investments including venture capitalist firms and crowdfunding projects. On the whole, these methods of raising capital have been successful with most entities reaching or even surpassing their goals.
As the gaming market continues to grow, it’s attracted a flurry of investment interest, and venture capitalists are no exception. This interest is predominantly because the market is growing so fast and the year on year increase in value offers lucrative potential. iGaming companies can choose from big-name, small name, or even gambling-specialist VCs to help them launch or grow.
This time last year, Vereeni Investments and RB Capital jointly purchased a big stake in game studio Green Jade Games. The investment was reportedly in the six figures and was designed to facilitate expansion and growth through the provision of capital, as well as connecting with Vereeni’s network of iGaming operators. Green Jade Games is the game studio of the MRG Group, owners of one of the leading online gambling sites Mr Green. The group of companies has a huge portfolio and Mr Green is renowned for sourcing jackpot games, slots, live casino games, roulette, and poker. Green Jade is just one of several gaming ventures that benefited from some EUR 100 million funds which aim to increase the potential of operators.
Crowdfunding is a wonderful option for startups to consider. Especially if you have a unique concept or approach, it can be easier than you might think to get funding from the grassroots community. The key to success is making sure your idea appeals to enough people to make them want to part with their cash.
In 2018, Spanish sports betting startup Pyckio smashed its crowdfunding goal to reach EUR 372,590 instead of the EUR 350,000 it had hoped for. With more than 25,000 users visiting around 145,000 times a month, the concept of the site is based on users submitting their picks for various sports like football, basketball, and tennis. Popular users then have the chance to be ranked and go on to become pro tipsters. In 2018, the company wanted to expand and acquire more capital to increase an investment fund allowing them to provide bets that were recommended by expert users. The money went to create a legal mechanism and a physical management office, rather than to go in the fund itself.
If you are considering moving into the online gambling world and need up-front capital, perhaps looking into these options could provide the solution.