Australian sports betting company Cipher Sports secures investment for expansion

Posted on: July 12, 2022, 12:08 p.m.

Last updated on: July 12, 2022, 12:16 p.m.

Cipher Sports Technology Group has raised $5 million in a Series A investment round. This Australian sports betting operator is poised to expand internationally and expects the money to help it meet its goals.

Cipher Sports Technology Group CEO Adam Fiske
Cipher Sports Technology Group CEO Adam Fiske. The Australian sports betting company has secured new investment funding to fuel its global expansion. (Image: Yogonet)

The investment will serve as the basis for an initial expansion into the American market. Despite some false starts recently in a number of countries, Cipher already has a presence there. As more states come online, it will be ready. It also plans to expand to other countries within the next 12-18 months.

The investment round was led by Cygnet Capital, an Australian investment firm based in Melbourne, according to a company press release. She also gained support from a number of “high net worth” individuals. Cipher did not disclose post-money values, earnings or any other financial information.

The US gaming market still a target

Cipher operates sports betting sites such as dimers.com. It features proprietary technology that the company says helps bettors better predict the outcome of games. Additionally, website advertising and referrals to online betting sites, such as DraftKings, BetMGM and PointsBet, earn money for the company.

Cipher also makes revenue through its B2B channel. This includes selling products and services to media companies and sportsbooks. The company, for example, closed a deal in May with Advance Local, an American publisher. Through the deal, Cipher’s content, tools and videos became part of the PennLive.com, LehighValleyLive.com and GulfLive.com websites. All platforms belong to Advance.

Cipher chief executive Adam Fiske said Cipher has built a “really strong brand and a great database of sports bettors”. He added that the new funding will allow the company to accelerate its growth and compete with the current market leaders.

Cipher is a newcomer to the sports betting industry, a product of a merger between Australian sports betting companies iRival Media and Hypometer Technologies. The latter, founded in 2015, targeted data and analytics, while iRival was a content and marketing company.

Nick Slade, who co-founded Cipher with Fiske in 2019, is Cipher’s chief content officer. Meanwhile, Cipher’s chief operating officer and chief technology officer are, respectively, Darryl Woodford and Katie Prowd, co-founders of Hypometer.

As a result of their long working relationship, finding common ground for the new sportsbook was “an easy process,” according to Fiske. He stated that it was more practical to work together than to be potential competitors in the US market.

Limited Australian growth

Cipher is an Australian based company with a prominent position in the Australian Football League and National Rugby League. However, the US market is where the future is, according to Fiske. He stated that the US is the focus of 90% of the company’s business because it offers many opportunities.

Australia has had legal sports betting since 2001; US only as of 2018. As a result, the potential for growth in Australia is less than in the US. Almost half of the states, as well as Washington, DC, already have legal sports betting.

Other states, such as Kansas, Maryland and Ohio, are finalizing rules for their markets. Additionally, California, North Carolina and several others may find a path to legalization next year.

Fiske agreed to Forbes that Cipher and other startups have had trouble raising capital. This is partly due to reluctance on the part of venture capital firms, investors and others. They predict an economic slowdown that could affect online sports betting, online gambling and other non-essential spending. However, Fiske doesn’t see Cipher needing to raise more money anytime soon.

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