Phil Hellmuth becomes angel investor for sports gambling startup

Posted on: July 10, 2020 08:59 PDT

PrizePicks finds support from Poker Brat and others as it looks to gain ground in the US

Poker legend and 15-time WSOP bracelet winner Phil Hellmuth might not be in a financial struggle as many believed after he was listed as one of the angel investors for a sports gambling startup. Daily Fantasy Sports (DFS) company PrizePicks just completed a funding round led by Parlay Capital Holdings, which landed a total of $850,000. The money was raised through issuing convertible notes, and Hellmuth is one of those investors. Convertible notes or bonds can be later turned into equity in the issuing company.

Hellmuth has been making several investments across his career and is considered one of the richest poker players in history. He has made investments in several projects, including purchasing stakes in YouStake and BlitzPredict - a sports crowdfunding platform - which works with blockchain technology. The Hall of Famer has invested in things like Muzik Headphones, Deck of Dice, and Lasso. His total worth might be $23 million; however, the amount he gave to PrizePicks was not disclosed.

PrizePicks offers a different format than its major rivals in the market. Instead of building a lineup on DraftKings or FanDuel to amass as many points as possible, PrizePicks offers the projected fantasy points for each player right on the platform, so gamblers can build their lineups and then wager on the over/under of the estimated points. This platform currently offers action in The Basketball Tournament (TBT), NASCAR, and the PGA Tour.

Just as most gambling companies out there, PrizePricks was affected by the absence of sports during the peak of the coronavirus pandemic. According to CEO Adam Wexler, this is one of the reasons behind the need for raising more capital; the company's goal was "a priced round fundraise ahead of the start of the 2020 NFL season."