DerbyJackpot
Derby Jackpot - Horse racing betting.
| Date | Investors | Amount | Round |
|---|---|---|---|
| - | investor investor | €0.0 | round |
| investor investor investor | €0.0 | round | |
$6.5m | Series A | ||
| Total Funding | 000k | ||
DerbyJackpot, operating under the corporate name Giddy Apps Inc., was a New York-based online gambling company founded in 2011 by brothers Tom, Walter, and Bill Hessert. Tom Hessert, serving as CEO, leveraged his e-commerce experience from Urban Outfitters to launch the venture, inspired by a visit to the Preakness Stakes. His brother, Walter Hessert, the Chief Product Officer, applied his background in political science and later experience in regulated industries to navigate the complex licensing landscape. The company aimed to simplify horse race betting for a broader, more casual audience, moving away from the complex statistics and terminology typical of the sport.
The firm's business model was centered on providing a legal, social, and gamified platform for real-money wagering on live horse races. It operated as an Advance Deposit Wagering (ADW) service, funneling user bets into the pari-mutuel pools of over 100 actual racetracks, thereby taking a small percentage of each bet placed through its site. The platform was designed to feel more like a social game, akin to Candy Crush or online slots, than a traditional betting site, featuring a vibrant interface, live chat, and simplified wager types. This approach successfully attracted a new demographic, with reports indicating that 75-80% of its users had never bet on a horse race before.
DerbyJackpot secured a total of $8.01 million in funding over several rounds, including a notable $6.5 million Series A in February 2015. The round was led by Bullpen Capital with participation from investors like Andlinger & Company and angel investor Alexis Ohanian. Key to its operations were strategic partnerships, particularly a technology and content agreement with Xpressbet, a subsidiary of The Stronach Group, which expanded its legal reach to 37 states and provided access to major races like the Preakness Stakes. Despite its initial growth and success in attracting hundreds of thousands of users, the company eventually ceased operations, with its status listed as "Out of Business" as of August 2024.
Keywords: online horse racing, real-money gaming, pari-mutuel wagering, social gambling, Advance Deposit Wagering, gamified betting, Derby Games, Tom Hessert, Walter Hessert, Xpressbet, digital gambling, horse betting platform, online wagering, casual gambling, Giddy Apps Inc., Bullpen Capital, sports betting, mobile gaming, licensed gambling, New York startup