Yahoo Sportsbook will expand its social gaming options with the acquisition of real-money sportsbook Wagr, which will be integrated into Yahoo Sports.
Wagr is a hybrid peer-to-peer operator that offers a platform for bettors to wager head-to-head against another bettor. Unlike most P2P operators, though, Wagr sets the lines for the bets.
Yahoo announced the acquisition is complete in a Tuesday press release. Terms of the deal were not released.
What about Yahoo Sportsbook-BetMGM deal?
This is not the first dip into sports betting for Yahoo, of course. Currently, Yahoo Sportsbook is powered by BetMGM and essentially acts as an affiliate for the company.
No bets can be placed through Yahoo Sportsbook but the site looks like a sportsbook and offers information about current odds. Any actual bets, though, take place on BetMGM. Bettors are sent to the BetMGM homepage where they can select their home state and place bets.
The acquisition of Wagr will have no impact on that partnership, a Yahoo spokesperson told LSR:
“The acquisition does not impact our deal with BetMGM. We are proud of our partnership with MGM and remain committed to working with them.”
Wagr significantly expanding offering
The Wagr app is in a holding period as of now, according to a message on the app:
“We’ll be back and better than ever in 2023. While you will need to wait to create a new account, you can sign up here to get a special promotion when we are ready to share what we’ve been working on. As a sneak (peek), it will include parlays, player props, futures, live betting and more!”
That is far more than Wagr could offer when it originally launched in Tennessee. The small startup struggled to get the full amount of insurance needed to launch, which led to special conditions:
- $500 max for each wager.
- $10,000 maximum monthly for each player.
- Point spread bets only.
- Maximum amount of wagers must be less than Wagr’s insurance coverage of $5 million.
Yahoo CEO: Purchase an ‘exciting step’
Wagr stands out for its emphasis on social engagement, which “aligns perfectly” with Yahoo’s fantasy platform, Yahoo CEO Jim Lanzone said.
“The acquisition of Wagr is an exciting step in the development of the next generation of Yahoo Sports’ gaming portfolio,” Lanzone added.
Wagr co-founder and CEO Mario Malavé said the scale and engagement Yahoo offers creates product loops between sports media and gaming.
“Yahoo Sports offers us a stage to build products that will reach millions of loyal fans that have connected over fantasy sports for decades,” Malavé said.