PrizePicks Concludes Funding Round with Backing from Poker Players

PrizePicks, the third-largest daily fantasy betting platform in the United States, has completed its latest private equity round, raising funds from high-stakes poker players.

High-Stakes Poker Players Back PrizePicks Equity

Daily fantasy sports operator PrizePicks has announced the end of a private equity round that attracted hefty interest by prominent high-stakes poker players and organizations, including members of Poker Central and PokerGO.

While poker and DFS hardly mix, PrizePicks’ pull has proven too much to resist by the likes of Phil Hellmuth and Jack McLelland, two Hall of Fame professional players, alongside Jeff Gross and Brian Balsbaugh, the founder of Poker Royalty, an agency that specializes in managing poker talent – a first of its kind.

Commenting on the latest equity round, PrizePicks CEO Adam Wexler summed up the developments by arguing that “poker professionals are all-in on premium unit economics when they see them.”

Wexler is confident that the company’s sound and profitable business model would secure more interest from diverse investors, giving it plenty of flexibility in the months ahead and beyond.

Taking on the Big DFS Companies in the US

In fact, Wexler is not afraid to issue a verbal challenge to DraftKings and FanDuel, arguing that PrizePicks may seek to expand beyond DFS, and launch into mainstream sports betting contests.

Wexler is not ruling out casino gaming as well. The company seems to be in good standing as, according to the chief executive, it’s already averaging $100 per consumer and it “closed 2020 with five consecutive record-setting months in terms of traffic, engagement, and revenue.”

Adding poker professionals and personalities is just another success to add to PrizePicks’ track record, as the company has already secured investment from NBA’s Andrew Bogut and Phoenix Capital Ventures and Parlay Capital Holdings, to name a few.

Bogut himself feels confident about the company’s future, and has argued that as an emerging company, PrizePicks has chosen to build in an innovative and smart way; much like Bogut himself did when he was part of the Golden State Warriors back in 2005.

The funds from the round will be used for various activities, including increasing the executive team as well as hiring more staff and arriving at new innovative solutions to keep the product competitive.

Right now, PrizePicks is the third-largest betting platform in terms of monthly revenue for daily fantasy sports, right behind DraftKings and FanDuel.