Casinos and other betting venues are increasingly going digital.
That is due in large part to online sports betting, which the American Gaming Association estimates will attract 30 million new players in the coming years.
An important entry point for new players is Freeplay games and titles, says Chalkline CEO Daniel Kustelski.
That is exactly what Chalkline, a Nashville-based analytics company, provides. Media companies, casinos, and sportsbook operators can attract new customers and understand current bettors as they look to grow their online presence.
“Our media company partners are looking to monetize their customer base via their own sportsbooks and through our freeplay games they can educate and acclimate sports fans about how betting works,” Kustelski told Hypepotamus. “Our casino and sportsbook partners are working hard to transition customers from retail to online, and from other casino products to betting, and our games help them to do that, too.”
Focusing on personalization and localization, Chalkine provides important customer data that could drive different paid games down the line. “There really is no better way for players to learn how to place online and mobile sports bets than by being able to go through the process without having to wager any of their own money. And that is the real beauty of our games,” added Kustelski.
Funding In The Online Gambling Space
Chalkline raised a $2.5 million Series A round earlier this summer, which the team says will go towards product development and “commercial momentum.”
The round was led by Parlay Capital Holdings and Patrick Conroy with participation from Afshin Yazdian, Andrew Braitchouk of Sports Media Interactive, and Clay Travis of Fox Bet Live and Outkick.
“The industry has been growing at pace over the past 12 months and investors are starting to better understand the total addressable market. This, in turn, is leading to a greater appetite to invest in businesses such as Chalkline that are at the cutting edge of the market,” added Kustelski.
Sports betting is currently only legal in 18 states and DC, with a handful of states actively debating the adoption of new legislation to allow for it. Tennessee legalized sports betting in 2019, which Kustelski said has helped Nashville become a “gaming technology hub.” But Chalkline’s business model has actually done well in states that have yet to pass gaming legislation.
“In fact, [our games] are particularly effective in states that have yet to regulate because they help operators to engage, educate and acclimate players to online and mobile sports betting so they are primed and ready to convert to real money bettors when the law enables them to do so,” added Kustelski.