Add “sports betting company co-founder” to Jake Paul’s interesting resume, which includes wide-ranging career endeavors such as Vine star, YouTuber, rapper, and boxer.
With over 70 million social media followers, Paul wants to “disrupt legacy gambling and legacy media” through the creation of Betr, according to a press release from the company. Paul will partner with Joey Levy, a co-founder of Simplebet – a technology company that uses machine learning and automation to better enable micro-betting – to create a micro-betting app.
I turned down $40 Million for this. @betr pic.twitter.com/r6BGQq7EfJ
— Jake Paul (@jakepaul) August 8, 2022
“I wasn’t into sports betting until I was introduced to micro-betting,” Paul, who will serve as the co-founder and president of Betr, said in the press release. “Micro-betting is the TikTok-ification of sports betting and I am excited to bring it to the masses through Betr.”
Betr plans to “disrupt” the sports betting industry with its micro-betting app, and the company also plans to build a sports media company that appeals to the “next generation of sports fans.” Betr, which will be headquartered in Miami, has raised $50 million in funding from numerous sources, including NFL players Ezekiel Elliott and Richard Sherman.
Betr uses Simplebet’s technology to offer users a micro-betting platform, and the Betr app will be released in “the coming weeks.” Initially, a free version will be available across the U.S., while a “real money betting experience” will be unveiled in late 2022.
According to the release, Betr has market access in multiple states through “equity-based partnerships.” More details on those partnerships are expected to be disclosed at a later date.
Levy and Paul expect micro-betting to play a significant role in the future of sports wagering, and Levy went deeper into his background and beliefs about mirco-betting in a blog post published Monday.
I am so excited to publicly announce @betr with @jakepaul today. This company feels like the culmination of my life’s work to date — and the beginning of an incredible journey with some amazing people. I wrote about it here. LFG!!!https://t.co/75AWZqyr4X
— Joey Levy (@joeyslevy) August 8, 2022
“Betr will unbundle micro-betting by building an entire company around it and delivering the experience in a simple, intuitive UI layer,” Levy, who will serve as the co-founder and CEO of Betr, said in the press release. “We believe micro-betting will ultimately emerge as the predominant way consumers bet on U.S. sports, given (1) the stop and start cadence of U.S. sports lending itself perfectly to this style of wagering, and (2) similarly to how daily fantasy sports innovated on top of season long fantasy, micro-betting introduces an order of magnitude greater level of instant gratification to the current sports betting user experience.”
Levy leaned into high expectations for the company, saying Betr could become “the most capital efficient and culturally relevant gambling business in the U.S.” Paul didn’t shy away from high expectations either, comparing Levy’s entrepreneurial talents to those of Jeff Bezos, Elon Musk, and Mark Zuckerberg.
Meanwhile, Alex Ursa, who previously worked with FanDuel as a senior product director, will join Betr as the company’s head of product.
The media company
Betr isn’t the first sports betting company to venture into sports media, as BetMGM, DraftKings, and FanDuel are all mobile sportsbook operators that have dedicated sites featuring written content, live shows, and podcasts. Additionally, PENN Entertainment owns the Barstool Sportsbook and Barstool Sports, combining sports betting with a well-known sports media brand.
While Betr isn’t the first sports betting company to connect itself with a sports media venture, Levy believes the media side of the company offers a way to provide “billions of dollars worth of free marketing” to the app. This logic revolves around Paul’s internet reach, as the press release refers to him as one of the “most famous Gen-Z personalities in the world.”
Thus far, Betr has launched BS w/Jake Paul, a weekly show Paul will seek to differentiate from a typical sports studio show by having genuine conversations with athletes, something he believes is lacking at traditional sports media outlets. That general concept isn’t drastically different from Barstool Sports, which promotes the Barstool Sportsbook while also having sports content that differs substantially from traditional sports coverage.
The media side of Betr will “independently generate revenue,” with several shows attempting to land significant sponsorship deals. Mike Denevi will be the company’s head of media. Denevi most recently worked for Bleacher Report, working as an on-air talent and the director of brand strategy for BR Betting.
“We want to be the category defining consumer company in both sports betting and sports media by the end of the decade and are confident we will achieve that goal,” Paul said.