Home » FanDuel Founders Launch Crypto Casino BetHog

FanDuel Founders Launch Crypto Casino BetHog

FanDuel Founders Launch Crypto Casino BetHog

FanDuel co-founders Nigel Eccles and Rob Jones have launched BetHog, an international cryptocurrency casino and sportsbook, with the help of a $6 million seed funding round.

At the start, BetHog will focus its work outside the U.S.—with attention placed on Asian and Latin American customer acquisition—and offer casino games created in-house. The company, which only accepts cryptocurrency deposits, plans to lean on global gaming live streamers to build an audience and play up its social elements.

The company’s business approach is inspired by areas of stagnation the FanDuel co-founders believe have taken hold in the gambling industry, as well as pain points they endured at the Flutter-owned company, which they left in 2017. (Eccles is involved in ongoing litigation in which he accuses the former board, controlled by KKR and Shamrock, of breaching fiduciary duties to its shareholders.) They are entering a sector Eccles acknowledged is crowded, where the minute details are of great importance.

For example, none of BetHog’s rivals market themselves with a colorful warthog logo—an image that began as a designer’s doodle before taking center stage. Eccles said the titular hog embodies a desire to contrast “conservative” companies unwilling to take risks with their brands.

“(The designer) just immediately grabbed a personality in the hog, you’ll see it,” Eccles said on a phone call. “And we were like, ‘Wow, I love that.’ He’s cheeky, he’s confident. He’s somebody you would like to hang out with.”

BetHog will present its warthog and digital gambling product through a narrowly focused marketing approach to start, largely because of its crypto-only model. Appealing to people without crypto wallets would be a waste of time, given their inability to participate. So, the company will try to meet crypto users where they are, such as the audiences of social media influencers.

Asked why BetHog is banking on crypto, Eccles said he isn’t religiously attached to the blockchain long-term, but he does believe in its value after being spooked in a meeting with PayPal higher-ups in a “windowless” Silicon Valley room while at FanDuel. “There was a risk officer just evaluating whether they were going to keep doing business with us,” Eccles said.

Beyond using crypto to mitigate the potential risk of payment providers like PayPal refusing to work with BetHog, Eccles said accepting crypto over traditional currency could prevent the frustration he experienced at FanDuel when customers would lose money before contesting their credit card charges. Crypto does not carry that company hassle.

BetHog’s plan is to prove itself in emerging markets and prioritize its casino products over its sportsbook before a possible turn toward the U.S. By developing its own casino games, which are geared toward group online play and social media interaction, BetHog hopes to gain a devoted user base it can spread to other regions.

One day, it could also license its proprietary games to other companies, though that is not an immediate priority.

“We just sort of feel that there may be 500 online casinos, but they’re all kind of the same, right?” Eccles said. “They’re the same games, they’re from the same third-party providers, and we think there’s an opportunity to build games that are just more social.”

Social media influencers, especially streamers with “real” audience connections, will be crucial to BetHog’s marketing strategy, with Kick considered a go-to platform. BetHog plans to strategically sponsor streamers for product promotion and feedback collection.

While looking for entry angles to gain a foothold in the global gambling industry, Eccles can perhaps look to his former world at FanDuel for inspiration. There, a dominating force’s shifting priorities have left lucrative morsels behind for others.

Because of the success of sports betting, market leaders FanDuel and DraftKings took their eye off the ball of daily fantasy sports—once their bread and butter—after the 2018 U.S. Supreme Court decision that opened the door for widespread legalized gambling. Upstarts Underdog Fantasy and PrizePicks have filled the void in the U.S. to become legitimate industry forces.

Eccles said he would have pushed for the same all-in betting focus if he had remained at the helm of FanDuel beyond 2017. But he recognizes how one company’s strategic position shift can benefit a start-up searching for a foothold. “That’s why they’ve been really successful,” Eccles said of Underdog and PrizePicks, “because they had to, that’s their only product.”

BetHog hopes its hyper-specific core product of proprietary crypto casino games with a social focus can catch rivals similarly flat-footed after this week’s launch.