- Company closed funding round late last year
- It launched a debit card designed to encourage responsible wagering habits
EDGE Markets announced that it wrapped up a $17.2 million seed financing round late last year, paving the way for expansion of its EDGE Boost platform — a suite of financial services tools geared toward bettors.
The financing round was led by Bullpen Capital with contributions from Step Stone Group, Suro Capital, Impulsum Ventures, Mantis VC, Indicator Ventures and others. It adds to the $32 million in debt previously raised by the gaming-oriented financial technology (fintech) firm. San Francisco-based Bullpen was an early investor in FanDuel, and holds stakes in other gaming entities, including Jackpocket and Swish Analytics.
We have had a front-row seat to stewarding companies with a mandate for responsible gaming, and we view EDGE as the next step in that equation by giving bettors a dedicated account for their gaming transaction,” said Bullpen founder Paul Martino in a statement.
Responsible wagering is the cornerstone of EDGE’s eponymous Boost products, which include a bank account and debit card. Not only does EDGE Boost allow customers to separate gaming-related transactions from their standard bank accounts, the platform allows them to set betting limits and employ “cool down” periods in which their account will halt betting-related transactions.
EDGE Boost Could Gain Appeal
EDGE Boost could gain a following among bettors for a variety of reasons, including the fact that users can gain 0.50% on “qualified usage” on daily fantasy sports (DFS) platforms, online sportsbooks, sweepstakes sites.
Clients can also earn up to $750 per month by transferring a $5,000 bankroll daily. Banks that custody cash on behalf of sportsbook clients typically don’t pay any form of interest on those deposits. Funds deposited to EDGE Boost accounts are held by Cross River Bank and are subject to FDIC protection up to $250,000 per account.
As noted above, another perk offered by EDGE Boost is that it allows bettors to have an account dedicated to that activity. While banks haven’t publicly confirmed as much, there’s a school of thought that those companies may be less willing to extend credit or mortgages to accountholders that are frequent bettors.
With the card tied to EDGE Boost being a debit card, not a credit card, clients get the added benefit of not being subject to cash advance fees and interest rates. Unbeknownst to many bettors that fund iGaming or online sportsbook accounts with credit cards, issuers of those cards treat those transactions as cash advances, thus subjecting cardholders to higher interest rates and transaction fees.
“The EDGE Boost VISA debit card can be used at licensed sportsbooks, horse racing platforms, iGaming (iCasino) websites, daily fantasy sports sites, and sweepstakes websites. It is also accepted at authorized brick-and-mortar casinos,” according to the company.
EDGE Focus on Responsible Gaming Could Drive Adoption
With concerns about problem gaming and related financial consequences rising, EDGE Markets could find a receptive audience among both bettors and gaming companies.
Industry veterans and those with common sense believe that the cornerstone of responsible wagering is that the bettor is only wagering an amount he or she can afford to lose.
EDGE Boost also provides real responsible gaming tools for its users to be smarter. On the operators’ side it also identifies users who have taken additional steps to play more responsibly without incurring additional costs or overhead,” said Paris Smith, Cco-founder of Defy the Odds and former chief executive officer at Pinnacle.
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