Yahoo has made an unexpected foray into the online sports wagering business by snapping up social betting app Wagr for an undisclosed sum.
A Tennessee-based startup launched Wagr three years ago, and it has since received $16 million in funding from investors such as Kraft Group, Greycroft and Seven Seven Six.
The app blends sports betting and fantasy gaming with social media, and it was the first operator of its kind to gain a license in the United States.
“The acquisition of Wagr is an exciting step in the development of the next generation of Yahoo Sports' gaming portfolio,” said Jim Lanzone, CEO of Yahoo.
“Wagr stands out for their innovative emphasis on community and social engagement in sports gaming, which aligns perfectly with the Yahoo award-winning fantasy platform that has brought tens of millions of fans together around their love of sports for over 20 years.”
Wagr will be fully integrated into Yahoo Sports, and the aim is to recruit more customers by making sports betting more accessible.
“Yahoo Sports offers us a stage to build products that will reach millions of loyal fans that have connected over fantasy sports for decades,” said Mario Malavé, co-founder and CEO of Wagr.
“The unique combination of Yahoo’s scale and engagement creates opportunities for virtuous product loops between sports media and gaming. Joining Yahoo allows us to continue delivering on our mission to connect fandom to social gaming while elevating our ability to execute through expanded resources, new partnerships and technological capabilities.”