UK Sportsbook Midnite Raises $35M in Funding Round Led by Raine
The rapidly expanding UK-based online casino and sportsbook operator Midnite announced that it has raised $35 million in a Series C fundraising round.
The capital raise was led by Raine Partners IV, which is the marquee growth equity fund managed by the Raine Group. The capital raise was also attended by former investors Play Ventures, Discerning Capital, Makers Fund, and Big Bets. Midnite has raised almost $75 million in equity financing with that $35 million.
"A majority of the investment will be channelled into expanding Midnite’s human capital, bolstering its product-led strategy and helping to close the gap with the market’s largest operators,” according to a statement issued by the gaming company. “Midnite will continue to build out its product team by hiring leading talent with a track record in disrupting established industries. All engineering teams will remain onshore in the UK to invest in world-class, local talent.”
About three months after Midnite obtained a $100 million credit line from House Advantage Fund (HAF), word leaked out about the Series C funding.
Investors in gaming are familiar with Raine
Since the venture firm was an early investor in DraftKings (NASDAQ: DKNG), seasoned gaming investors may be familiar with the Raine Group. Additionally, Raine used to own stock in Accel Entertainment, a distributor of video games (NYSE: ACEL).
Additionally, Raine was an investor in Jackpocket, an online lottery operator that DraftKings purchased for $750 million in shares and cash almost two years ago. Additionally, the venture capital business owns a portion of Fliff, a social sports prediction platform based on sweepstakes. On Midnite, Raine seems helpful.
“We’re pleased to deepen our relationship with Midnite as it continues to develop its product portfolio and grow at scale,” said Raine co-founder John Salter in a statement. “The Midnite team has a clear vision, with the dedication and passion necessary to be an industry leader in product innovation. We look forward to seeing what comes next as Midnite paves the path forward for the next generation of players.”
Midnite's Competitive Market Operation
Midnite could make good use of the aforementioned capital because the UK is one of the most mature and competitive sports wagering markets in the world — one dominated by large players such as Entain, Flutter Entertainment, and William Hill, among others.
The competition is betting that Midnite's customer- and tech-first strategies could pay off in the long run, and the company isn't backing down.
“The company distinguishes itself by developing its entire sportsbook and casino platform in-house to bring fans closer to the games they love. This proprietary technology empowers Midnite to prioritise a truly customer-centric approach, delivering a superior player experience while maintaining the highest safety standards,” said the company in the press release.