SIG investment is set to fuel Smarkets’ US push

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Markets, a London-based sports betting exchange operator, received significant investments from a mutual fund affiliated with the American trading giant SIGwhich signals an impending advance in the US.

Betting similar to trading

The significant minority stake of Susquehanna Growth Capitalna, an affiliated mutual fund SIG, marked the first time since 2013 when outside money flowed into smarkets. The operator, founded in 2008, has been on the profitable side since 2008 2014.

According to Scott Feldman, Managing Director of the mutual fund, Smarkets’s focus on technology was the main driver behind the investment. Susquehanna’s parent company SIG is a multi-billion dollar asset quant trading and market making company.

Smarkets founder and CEO Jason Trost outlined that the betting exchange operator has raised the money to fund its foray into the growing US sports betting market, underscoring Smarkets’ advantage over the competition in terms of in-house technology.

“… we have all of our own technology – that’s pretty unique – and our prices are fundamentally different in the industry from everyone else’s. We have only just begun to take advantage of these two things and additional capital will help us do that. ”

Jason Trost, Founder and CEO, Smarkets

Trost, who was a stock trader prior to founding Smarkets, firmly believes that betting and financial markets have a lot in common, and the interface his company uses reflects this, which is more like a Bloomberg terminal than a traditional sports betting website.

“Our hypothesis is that in 10 years this will be 100% a game of financial technology, and we are delighted that Susquehanna shares this vision.”

Jason Trost, Founder and CEO, Smarkets

Own technology brings competitive advantages

Smarkets, which is already present in the US with its SBK sports betting product, will use the investment to open up new markets, noted Trost, and outlined that the operator would not try to outperform competitors on spending, but rather be more creative in marketing would be .

Regarding potential partnerships with other operators, Trost insisted that he “didn’t find someone to do sports betting technology in-house,” and was obviously referring to the ongoing trend from industry leaders like Draft kings that has taken over its technology provider SBTech and carried on by the casino giant Caesar’s conversation who did the same by acquiring it William Hill.

The Smarkets betting exchange in the UK allows bettors to place bets against each other that relate not only to sporting events but also to other areas of life such as politics and current affairs, with more than 50,000 monthly users and more $ 5 billion When it comes to betting in 2020, Jason Trost firmly believes that the UK will remain the company’s “beating heart”.

Markets, which employs around 85 people in its offices in London, Malta and Los Angeles, broke the betting volume record in a single event at this year’s Grand National Horse Racing Festival.

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