Yahoo Bets on Wagr to Boost Its Gaming Offerings

Yahoo has acquired peer-to-peer sports betting app Wagr to expand its sports fantasy platform.

The deal, announced Tuesday (April 25), makes Nashville-based Wagr — the first social sports betting operator to receive a license in the U.S. — a fully-integrated part of Yahoo Sports. Terms of the purchase were not disclosed.

“The unique combination of Yahoo’s scale and engagement creates opportunities for virtuous product loops between sports media and gaming,” Wagr Co-founder and CEO Mario Malavé said in a news release.

“Joining Yahoo allows us to continue delivering on our mission to connect fandom to social gaming while elevating our ability to execute through expanded resources, new partnerships and technological capabilities.”

And Jon Shaw, senior vice president of Yahoo Sports, said the acquisition allows his company to expand into new group formats and boost engagement.

“While we know our fantasy leagues increase fan engagement and give people something to root for, the real value is in keeping friend groups together through competition and camaraderie around the sports they love,” Shaw said.

PYMNTS looked at the prevalence of online sports betting earlier this month. As we noted, the legalization of online sportsbooks has helped mainstream the industry, with a record 20% of Americans placing wagers on this year’s Super Bowl.

“While the infrastructure of sport betting may have changed, the way gamblers prefer to get paid has not: as quickly as possible,” PYMNTS wrote.

“This is such an expectation that consumers filed around 2,400 Better Business Bureau complaints in recent years against the country’s three largest sports betting providers regarding the speed of which winning withdrawal requests are satisfied.”

Online sportsbooks recognize this consumer demand and consider instant or near-instant payouts essential to their profitability.

Contributing to a recent Money Mobility report, DraftKings explained the importance of secure payment speed for their business model and the industry.

“In fact, the speed of payments is so important that it can be a differentiator for customers choosing between gambling operators,” the company’s contribution says. “Based on this strong desire for quick disbursements, DraftKings offers instant payment options to its customers.”

But it’s not just online sportsbooks investing in the benefits of speedy payments. For example, Mastercard has been carving out a space in this sector, recently teaming with BetMGM to integrate near-instant payouts via its Mastercard Send platform.

“With 26 states (and Washington, D.C.) having legalized online sportsbooks, the scale of sports betting is likely to continue increasing,” PYMNTS wrote. “Though the size and scope may have changed in recent years, it remains true that winners want their winnings — now.”