One of America’s largest web services providers is expanding its presence in the legal sports betting market.
Fantasy sports giant Yahoo has agreed to acquire Wagr — a sports betting platform that allows users to compete against their peers. Terms of the deal were not disclosed. Founded in 2020, Wagr became the first social sports betting operator to be awarded a license in the United States when the platform gained online market access in Tennessee two years after its launch.
Wagr is no longer one of Tennessee’s online betting sites as it halted operations in Q4 2022. However, Yahoo believes the acquisition of Wagr can bolster the company’s gaming portfolio.
“While we know our fantasy leagues increase fan engagement and give people something to root for, the real value is in keeping friend groups together through competition and camaraderie around the sports they love,” said SVP of Yahoo Sports Jon Shaw in a statement. “Acquiring Wagr creates an immediate opportunity for us to expand into new group formats that can take engagement and friendly competition to the next level.”
Wagr had a portfolio of investors that included New England Patriots owner the Kraft Group, New Jersey Devils and Philadelphia 76ers owner Harris Blitzer Sports & Entertainment, and venture capital firms Greycroft and Seven Seven Six — led by Reddit co-founder Alexis Ohanian.
The investors helped Wagr raise $16 million, which included a $12 million Series A round.
One step further
Wagr isn’t Yahoo’s first foray into sports betting. In 2019, the tech giant launched its Yahoo Sportsbook in a partnership with BetMGM — one of the largest operators in America. The multiyear deal included the distribution of Yahoo Sports’ content across MGM’s properties.
BetMGM has market access in 20 states across the U.S., including New York and Pennsylvania.
