Venture firm Bettor Capital achieves initial closing for real money online gaming fund

Early-stage investment platform Bettor Capital, focused on the real money online gaming market, announced on Wednesday the initial closing of its Fund I at more than $50 million. More money is expected to be raised in the next few months, in an effort to reach a $120 million goal.

The fund will be centered on early-stage investment opportunities in software and technology facilitating real money online gaming operations, with a primary focus set on the North American market, describes a press release. According to the venture firm, it will be one of the first of its kind dedicated to the enabling technologies supporting the rapid expansion of the real money gaming sector.

Bettor Capital was founded last year by industry veteran David VanEgmond, who previously held executive roles at FanDuel and Barstool Sports, and is being joined by Jake Kleiner, “a seasoned software and fintech investor” who started and led the early-stage investing practice at U.S. Bank and previously was an investment professional at Vista Equity Partners.

“The real money online gaming industry is expanding rapidly across North America as new jurisdictions regulate and open to meet the significant consumer demand we see across sports betting, iGaming, iLottery and other verticals,” said VanEgmond. “We are excited to announce the initial closing of our Fund dedicated to investing in this space.”

The fund announced its first investment last week: Data Skrive, a Seattle-based content automation platform. The round was led by Bettor Capital, with participation from existing investors, and a Series A financing round was completed for an undisclosed amount

VanEgmond expects the industry network and domain knowledge of the firm, combined with software investing experience, will allow it to support entrepreneurs “in a compelling and differentiated manner” as they grow in the sector.

“Everyone in the real-money gaming industry is having their Amazon moment, going digital,” he said in an interview. “Legacy casino businesses are almost like retail giants, like a Wal-Mart, and now need to become Amazon. And we’re investing in the technology and software solutions that enable that digital transition."

Bettor Capital has further announced that its ongoing activities will be supported by the formal establishment of a group of Fund Advisors, conformed by “leading figures” from a variety of sectors, including real money gaming, sports, technology, media, telecom and private equity. Some of those advisers are also investors in the fund.

The Fund Advisors will provide strategic support and operational expertise for the fund, its limited partners and portfolio companies across “critical leadership domains” including legal and regulatory compliance, brand and marketing, strategy executive development, and more.

Advisors include Melissa Blau, founder of online casino-focused consulting firm iGaming Capital; Julie Haddon, former Senior Vice President of Global Brand & Consumer Marketing for the NFL; Steve Kaplan, co-owner of professional sports teams DC United and Swansea City; Carl Sottosanti, former Executive Vice President and General Counsel at Penn National Gaming; Carl Vogel, private investor and advisor, and former Chairman of the Board of FanDuel.

“The knowledge, focus, and subject matter expertise that these individuals bring to the table is unparalleled in their respective fields and we could not be more excited to have each of them on board as Advisors for Bettor Capital,” said Kleiner.

Since its launch, Bettor Capital has also done consulting work in addition to raising and investing, including D.C. United in its 10-year agreement with FanDuel. As consulting work was largely to help network for Bettor Capital’s investing, it will slow now that the first fund has closed.