EDGE Markets Lands $17.2M in Funding for Gaming-Only Banking Platform

EDGE Markets has announced that it completed a $17.2 million seed financing round at the end of last year, enabling the growth of its EDGE Boost platform—a collection of financial services tools designed for bettors. 

The funding round was spearheaded by Bullpen Capital, with participation from Step Stone Group, Suro Capital, Impulsum Ventures, Mantis VC, Indicator Ventures, and additional investors. It contributes to the $32 million in debt already acquired by the gaming-focused financial technology (fintech) company. San Francisco's Bullpen was an initial investor in FanDuel and owns shares in other gaming companies, such as Jackpocket and Swish Analytics.

"We have had a front-row seat to stewarding companies with a mandate for responsible gaming, and we view EDGE as the next step in that equation by giving bettors a dedicated account for their gaming transaction,” said Bullpen founder Paul Martino in a statement.

Responsible betting is the foundation of EDGE’s named Boost offerings, which consist of a bank account and debit card. EDGE Boost not only enables customers to distinguish gaming transactions from their regular bank accounts, but it also permits them to establish betting limits and implement “cool down” intervals during which their account will suspend betting transactions. 

EDGE Boost Might Attract Interest 

EDGE Boost might attract bettors for several reasons, notably that users can earn 0.50% on "qualified usage" on daily fantasy sports (DFS) platforms, online sportsbooks, and sweepstakes sites. 

Clients can additionally earn as much as $750 each month by moving a daily bankroll of $5,000. Banks that hold cash for sportsbook clients generally do not provide any interest on those deposits. Money placed in EDGE Boost accounts is maintained by Cross River Bank and is eligible for FDIC insurance up to $250,000 for each account. 

As mentioned earlier, an additional benefit provided by EDGE Boost is that it enables bettors to maintain a separate account specifically for that purpose. Although banks haven't officially stated this, some believe that these institutions might be less inclined to offer credit or mortgages to customers who are regular gamblers. 

Since the card linked to EDGE Boost is a debit card rather than a credit card, customers enjoy the advantage of avoiding cash advance fees and interest charges. Many bettors who use credit cards to fund iGaming or online sportsbook accounts are unaware that card issuers classify those transactions as cash advances, resulting in higher interest rates and transaction fees for cardholders. 

“The EDGE Boost VISA debit card can be used at licensed sportsbooks, horse racing platforms, iGaming (iCasino) websites, daily fantasy sports sites, and sweepstakes websites. It is also accepted at authorized brick-and-mortar casinos,” according to the company.

EDGE's Emphasis on Responsible Gaming May Foster Adoption 

As worries regarding problematic gambling and associated financial effects increase, EDGE Markets may appeal to both gamblers and gaming firms. 

Experts in the field and practical thinkers agree that the foundation of responsible betting is that the gambler should only bet what they can afford to lose. 

EDGE Boost offers genuine responsible gaming tools to help its users make smarter decisions. "From the operators' perspective, it also recognizes users who have made further efforts to engage in more responsible gaming without facing extra expenses or burdens," stated Paris Smith, co-founder of Defy the Odds and former CEO at Pinnacle.