London-based Midnite announced Monday the first closing of a $16 million Series A funding round to create a licensed esports betting platform in markets that allow it. The round was led by The Raine Group, a global merchant bank focused on media and technology.
As a result of this funding round, existing investors increased their investments in the company. John Salter, Raine co-founder and partner, will join Midnite's board of directors. MD Garrett Gomes will become a board observer.
So far, Midnite's initiatives include Sportsbook, launched in 2020, which lets users wager on esports and traditional sports; "CashMode", launched in 2021, to provide skilled gamers the chance to bet on their own gameplay for real cash prizes; and upcoming "Arcade", expected to launch in 2022, that offers users a hypercasual casino and minigames experience with a user interface and features designed specifically for gamers.
Raine has been investing in the gaming sector since its inception in 2008, with early investments in DraftKings, Jackpocket and Mythical Games, among other companies.
Midnite was founded in 2018 by Nicholas Wright and Daniel Qu, gaming industry product specialists who previously created Dribble, a daily fantasy sports platform. The team worked closely with UK operator Sky Bet to launch the platform.
“We pride ourselves on leveraging the best forms of technology, fan-centric features, and in-house models to offer next level experiences to our users,” Wright said. “We’re thrilled to be partnering with Raine, one of the most successful investors in gaming, as we seek to expand globally. Raine’s funding, as well as its strong relationships in the gaming industry, will be extremely valuable to us as we move forward with our strategic goals as the esports market continues to rapidly grow.”
The Raine Group co-founder and partner John Salter added: “Midnite employs a product-first growth mentality, and we have been impressed by its founders and fully believe in their vision for the company. Their talented and dedicated team is passionate about changing the way fans experience the games they love, and we look forward to helping them create the next generation of sports betting.”
Midnite is currently licensed with the UK Gambling Commission and is pending licensing approval with the Malta Gaming Authority. Outside of the UK, Midnite has held a soft launch in Brazil and next expects to enter into the Mexico market, which will be accelerated by a partnership with a Mexican operator.