Why we invested in Players’ Lounge, a P2E sports wagering platform
Gamers in the AAA gaming ecosystem have historically had limited play-to-earn (P2E) opportunities and no way to earn crypto. That means players can’t maximize their reward potential from participation in games from the big gaming publishers – such as Take-Two, Electronic Arts, and Activision Blizzard.
But the P2E gaming landscape is changing thanks to Players’ Lounge, a peer-to-peer wagering platform that enables gamers of all skill levels to earn money playing their favorite AAA video games. Players’ Lounge connects users to an opponent with the tap of a button. Gamers can place bets against other users in solo head-to-head matches, tournaments, or with friends. Now, instead of having nothing to show from in-game purchases, gamers can compete for real money and, eventually, for crypto.
The Players’ Lounge platform was launched in 2018, and has already hosted over seven million matches in which $135 million was wagered. The company’s 2021 revenue topped $5 million, and we think that’s just the beginning. That growth potential is why we joined Griffin Gaming Partners in a $1.25 million Seed extension round. Among the other early investors in Players’ Lounge are Y Combinator, Courtside VC, Comcast Ventures, Canaan Partners, Strauss Zelnick, CEO of Take-Two Interactive; Michael Seibel, CEO of Y Combinator; and Drake, the Canadian rapper.
Players’ Lounge is initially focused on facilitating P2P wagering for AAA players, earning a commission from each wager. By starting with the AAA market, Players’ Lounge can rapidly grow its user base by partnering with big gaming publishers. The company also offers a subscription-based model that gives subscribers access to members-only tournaments with big cash prizes. Also in the works is a peerless betting system that will utilize the company’s proprietary artificial intelligence engine to create individual wagering opportunities for gamers to "bet against the house," rather than compete with human opponents.
Game publishers will benefit from Players’ Lounge because it increases engagement and extends the life cycle of their underlying games, ultimately increasing the lifetime value of its customers. Popular games on the platform range from Madden 22 and FIFA 22 to Call of Duty: Modern Warfare and MLB The Show 2022.
The company’s three co-founders have the development, sports media, operations, and digital strategy experience needed to succeed. Austin Woolridge, CEO, and Zach Dixon, COO, were college teammates on the Wesleyan University soccer team. Austin has product strategy and operations experience and Zach has sports marketing experience. Co-founder Dan Delaney has app and product development experience. Other members of the management team include Duncan Lewis, CTO, and some veterans of FanDuel.
While the esports market is crowded, we think Players’ Lounge has some competitive advantages, including its on-demand matchmaking system for mobile and console gaming, payment processing sophistication, and strategic relationships with industry experts. At scale, we think this game-agnostic platform will give AAA gamers the ability to make money playing their favorite video games. In the long run, we think everyone will be a winner.
Antonio Key is an Investor at Samsung Next. Samsung Next's investment strategy is limited to its own views and does not reflect the vision or strategy of any other Samsung business unit, including, but not limited, to Samsung Electronics.
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