Boom Entertainment, the developer of predictive game apps, has completed a Series A funding round that saw it collect around $15 million. The company’s existing relationships with land-based casinos in several states made it more attractive to investors, helping it to quickly pick up new funds. Among those participating were several gaming industry heavyweights, as well as others who are actively watching the industry grow.
Boom Entertainment Completes Funding Round
It was only about a month ago that Boom scored a new deal with Rush Street Interactive (RSI) as it continued to advance in the US gaming market. It then turned to Sands Capital Management to organize a new Series A funding round, which has now attracted significant attention. The $15 million Boom reportedly secured comes through industry heavyweights such as former MGM Resorts International CEO Jim Murren and Tilman Fertitta, through his Golden Nugget Online Gaming (GNOG) arm. Additionally, the owner of the New England Patriots of the NFL and the New England Revolution of MLS, Robert Kraft, also bought in; however, individual contributions aren’t known.
RSI got behind Boom last month, which allowed it to find an open door for gaming operations in Louisiana, Mississippi and New Mexico. The new funding will help the companies continue to expand, but could also lead to a major shift in power at some point in the future. GNOG is currently a target of DraftKings in a deal worth around $1.56 billion and, should it be approved, Boom could ultimately become part of the large gaming enterprise.
Boom Set to Explode
Boom also has several high-profile clients in its portfolio that served as an enticement to attract new investments. The New York-based company provides its free-to-play sports gaming apps for companies such as MSG Network and NBC Sports, and its NBC Sports Predictor has quickly seen meteoric growth in the gaming space. That growth isn’t likely to slow down anytime soon, with Boom ready to enjoy the rise to the front lines of the industry.
With the expectation that the US iGaming and sports betting spaces will soon be worth as much as $40 billion, if not more, companies like Boom that offer a unique alternative are going to see particularly higher returns. Boom hasn’t provided an indication of what its valuation is following the recent Series A funding round, but it’s likely that it is already appearing on the radar of several companies as a potential acquisition target. Whether Boom decides such a deal is beneficial remains to be seen, especially given the rapid growth and strong returns it is enjoying.