123gaming Limited has launched a Seedrs crowdfunding campaign for its 123Bet racing product, with the company seeking to raise £1 million in funding for a combined 11.66% of equity.
The racing enterprise generates revenue through the operation of its online wagering site www.123bet.com and its 123racing Pick6 wager via Sportech’s tote platform.
The wager, which is similar to a handicapping contest, pits players against the market, with national leaderboards displayed on-screen at racetracks, at off-track betting shops, betting terminals, online and on mobile devices across America.
Racing technology and systems provider Sportech has kick-started the campaign with a £100,000 investment in 123gaming.
Founded by the New Zealand-born horse breeder and IT expert Rob Earle, 123gaming raised US$1.5 million through private investors in May 2015 to obtain licences in the US and soft-launch an online wagering site. Investors to date include friends and family who have also introduced entrepreneurs and racing enthusiasts as investors. The Company has achieved
The Company claims to have achieved turnover of more than US$10 million since launch including US$4.5 million last year. A successful £1 million fundraising for 23% of the company would value 123gaming at £4.3 million. Potential exits include an IPO or continued expansion as part of a larger group.
Rob Earle, CEO of 123gaming, commented on funding: “We are very pleased that Sportech has helped us get this funding underway. We have successfully undertaken smaller funding rounds through the Enterprise Investment Scheme. There has been a significant response to our games in the US, with very little marketing spend, and we are now 100% focused on expanding our offering in both the US and UK with Sportech as our partner.”
Andrew Gaughan, President of Sportech Racing // Digital, backed 123gaming as an investment: “Based on our experience distributing the 123racing wager in the USA, Sportech continues to be bullish on the appeal of the 123gaming platform in the US gaming marketplace and the opportunity for expansion in the UK.”