BuddyBet raises $3M to bring social betting to games

Social betting platform allows sports to challenge each other to P2P real-money bets

As online gaming continues to evolve, it is becoming clear that real money gambling is key to the future of the industry, and its ability to successfully monetize. Big online gaming companies, like Zynga and Big Fish Games, have already launched real-money casino games in the U.K. and are even lobbying to bring legalized online gambing to the United States.

Now social betting platform BuddyBet wants in on the action.

The company has received $3 million in seed funding, it was announced Tuesday. The funding came from private investors, and the money will be used "to fund the next phase of the development of its P2P betting platform." Specifically, BuddyBet makes it clear that it wants to bring its platform to online and mobile games, allowing players to bet against each other.

"We believe that skill game betting is an effective way of monetizing games without the negative implications for a pure and user-friendly experience that occur with other popular monetization methods," Jarrod Epps, CEO of BuddyBet, said in a statement. "BuddyBet offers a fun and effective way of allowing gamers to support their favourite developers, and this latest round of funding will be crucial to our effort to fulfil this objective."

Founded in August 2012, the Prague-based BuddyBet launched as a business-to-consumer (B2C) sports betting product. It gives sports fans the chance to challenge each other to P2P bets, or to make bets against groups of rival fans for cash, virtual money or forfeits. Users are able to bet on the BuddyBet website, or through customised versions of the product on other websites. 

BuddyBet notes that it was able to gather momentum in the sports media industry through a partnership with DSG, and it has now seen its platform integrated across more than 180 websites including Footymad.net.

Now, having achieved this success in the sports betting space, the company has set its sights set on "parlaying that success with an extension of their platform across the much larger gaming industry."

By allowing gamers to play  against opponents in skilled betting challenges, it allows the companies to make money without having to resort to other types of monetization, including advertising.

“Games developers, big and small, all face similar challenges when it comes to monetizing their games,” Epps said. “For huge brands with dedicated communities it’s easier to charge a high retail price. However, online and mobile developers targeting more casual gamers must turn to alternative methods such as banner advertising and freemium models which annoy their audience and often drive users away.”

Also, allowing players to put real money into their games increases the time spent on the site, as well as brand loyalty, BuddyBet says.

Real-money gaming

Real-money gaming is opening a big opportunity in online gaming, and some big names in the industry have already got their hands in the pot. 

In March, the company purchased Self Aware Games, and its parent company, Social Concepts. The company made a game called Card Ace: Casino, which was subquently renamed Big Fish Casino. That game became available in the United Kingdom in August, the first time that a real-money gambling mobile game was made available in the App Store.

One of Big Fish's biggest competitors, Zynga, recently followed suit, launching its own gambling games in th U.K. in April. The company has also been attempting to bring real-money gaming to the U.S., filing paperwork with the state of Nevada in December that was the first step toward getting a gaming license in the state.