Esports betting provider Midnite has announced that it has raised a further $2.5 million in additional funding thanks to the latest round of “strategic” investment in the company.
The company, which not only runs its successful esports betting service, but also the fantasy football application Dribble, has received the investment from a number of investors, led by Makers Fund, a gaming-focused venture firm.
Other investors in the company from earlier rounds include London-based venture capital firm Venrex Investment Management, as well as a number of anonymous individuals, some of whom are believed to hold senior positions in a number of betting companies, such as GVC and Betfair.
Since the company was founded in 2016, a total of $4.5 million has been raised by investors to help get Midnite’s esports betting service in action and the site is now carving out a place for itself within the competitive esports betting industry.
“Single Biggest Opportunity”
Speaking about the new round of investment, Midnite’s co-founder Nick Wright revealed in an interview with TechCrunch that:
“The esports market is seeing rapid year-on-year growth and we believe that betting represents the single biggest opportunity in this space.”
“Wagering on esports is expected to exceed $12 billion by the end of 2020, making betting already one of the fastest growing verticals within esports..”
Wright was also quick to point out that Midnite offers something different to the more familiar betting sites available online, for whom esports is “just another tab” in their long list of betting opportunities. Wright argues that esports punters are not your typical sports betting fan, stating:
“They are an entirely new customer category and deserve a platform tailored to them. This is why Midnite exists.”
Wright then went on to explain how Midnite differs from traditional betting providers in their approach to esports betting. He explained that he sees Midnite as a self-contained “entertainment platform” where fans can watch, analyse and bet on their choice of the top teams and individual players across the wide range of esports played competitively around the world.
“What makes esports differ from other spots is the constant action and its highly dynamic nature,” explained Wright. “This is conducive to a variety of live betting opportunities that you can seldom find in real sports. Users can bet on your standard match winners and losers, but they can also bet on unique selections such as next kill or next objective achieved while matches are in-play.”
Expansion Beyond the UK
Having already obtained a betting license in the world’s largest betting market of the U.K, Midnite is now looking to expand its operations globally into territories where esports betting is legal.
“We are acquiring additional licenses to do so,” stated Wright, though he did not say whether this new round of funding would be used partly to facilitate this.
“We are creating a safe and responsible environment for these [esports] fans. Customer safety is our top priority and we are taking it very seriously. We are doing everything by the book to ensure our community is safeguarded and [that we] are compliant with all the regulations in markets where we are operational.”
Currently, there is no date set for when Midnite’s invite-only beta site will go fully live.
Image courtesy of Midnite