Esports Betting Startup Midnite Raises Over $2.5 Million for New Platform
Esports betting startup Midnite, the same company behind Dribble, a daily fantasy football app, has successfully raised over $2.5 million in funds. With the backing of venture firm Makers Fund and others, the funding isn’t going to go towards a general online slots or sports betting site. Rather, Midnite aims to be an entire “entertainment platform” solely providing esports betting services.
Midnite’s Plans for Building an Esports Betting “Platform”
The esports betting industry has exploded in recent years, alongside the rapid growth of the larger esports industry itself, with many new startups and companies attracting high-profile investment. After all, analysts expect the market to reach $12 billion in value by the end of 2020. Midnite has now raised around $4.5 million total for their particular project since 2016. (Including the addition of this latest round of funding which secured $2.5 million of that total.) Their investors include Venrex Investment Management, along with various “founders and executives” from gaming companies, including Betfair.
It’s easy to see why Midnite’s plan would attract attention. Speaking with TechCruch, Midnite co-founder Nick Wright explains that esports is; “just another tab,” for most existing betting sites. Midnite, on the other hand, aims to be an “entertainment platform” which caters solely to the esports betting audience. “What makes esports differ from other sports is the constant action and its highly dynamic nature,” explains Wright; “[…] 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.”
Midnite’s Current Availability and its Focus on User Safety
Midnite is currently only available as an invite-only beta. However, the company has already secured a betting license in the UK. This means that Midnite is the country’s sole platform for purely esports betting. Building on from that, the company is working to acquire licenses in other territories as well. Importantly, Midnite could offer customers a much safer and better regulated esports betting platform than currently exists. Portions of the esports betting industry have become somewhat infamous for their unregulated nature in recent years. Indeed, reports of suspicious betting activities have been growing rapidly.
“We are creating a safe and responsible environment for these fans,” explains Wright; “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 are compliant with all the regulations in markets where we are operational.”