This week: Midnite lands $100M credit financing deal to accelerate UK expansion

Midnite lands $100M credit financing deal to accelerate UK expansion

The news: Online sportsbook and casino Midnite has secured up to $100M in credit financing to accelerate its growth in the UK market and become a “tier-1 operator.” The revolving credit facility is provided by the House Advantage Fund (HAF)—the user acquisition financing vehicle launched earlier this year by Discerning Capital (which led Midnite’s $10M Series B in April) in partnership with PvX Capital. The deal gives Midnite access to $20m immediately, with capacity to scale further as needed.

Zoom in: HAF’s structure is designed specifically for operators: capital deployment is tied to marketing performance, letting firms scale aggressively without unnecessary dilution or restrictive repayment schedules. For Midnite, it means tripling down on both performance and brand campaigns while freeing up cash for hiring and product development. “The flexibility of the House Advantage structure means we can pursue our long-term strategy with greater conviction and fewer trade-offs,” said CEO Nick Wright. Discerning’s Davis Catlin called it a new benchmark for how ambitious operators can finance growth—addressing what he described as years of constraint under traditional VC and credit models.

Why it matters: This is the first major public deployment of HAF, which BettingStartups exclusively reported on in June. The fund was designed to solve a sector-specific problem: how do operators finance costly user acquisition without giving up equity or straining balance sheets? By tying capital to marketing outcomes, HAF gives high-performing operators like Midnite a path to sustainable, non-dilutive scale. It also signals a maturation of the ecosystem—specialized financial products now exist that reflect the realities of gambling businesses. For Midnite, the facility provides firepower to compete in a market where tier-1 ambitions require not just brand and product differentiation, but deep marketing war chests.

BetHog reveals AI-powered live dealer ‘Sunny’

The news: BetHog, the crypto casino founded by the co-founders of FanDuel, has unveiled ‘Sunny,’ the world’s first AI-powered blackjack dealer. Sunny remembers names, recalls past conversations, reacts to the game, and even cracks jokes—an attempt to replicate and scale the best aspects of the in-person blackjack experience. The company says Sunny represents a “new category” in the $15B live casino industry, aiming to give players a consistent, interactive experience free from conventional dealers who may appear “detached or exhausted.”

Zoom in: CEO Nigel Eccles says the product was inspired by his own affinity for blackjack, and particularly, the dealers who help “lift” the game. “I’ve always felt [blackjack] is the one game where the dealer really made the game,” Eccles told BettingStartups. “Even if you are losing, if you have a fun dealer it is a good experience.” The launch is also designed to create stickier engagement—BetHog is running a promotion where the first player to uncover Sunny’s five “secrets” wins $50,000.

Why it matters: AI in real-money gaming is often focused on optimization, personalization, or fraud detection, whereas BetHog is using it to enhance entertainment value. Eccles sees Sunny as just the start: “We think this concept can extend beyond blackjack to the broader casino experience,” he said, or that the technology could enable every high-value player to have their own personal VIP manager. “That is something we think a lot about.” If successful, Sunny could signal a broader shift in how online gaming thinks about AI integration—where the tech not only powers the backend, but becomes part of the show itself.

The news: BettingStartups is hiring a Head of Podcast Operations to take full ownership of its growing podcast studio. It’s a 3-month contract to start, with the chance to scale into a long-term role. Full job description here.

Why it matters: We’re running three active weekly shows with more on the way, and we need someone who can turn our production function into a scalable machine. If you’ve built multi-show pipelines before, know what “great” looks like in podcasting, and thrive on process, this is your stage. You’ll own the systems, workflows, and team behind the mic—and help shape the leading voices within the real money gaming ecosystem. If that sounds like you, apply here!

Why SavageTech is building the ‘Microsoft Clippy’ of gamification for operators

The news: Tom Lemke, a lifelong gamer and veteran of four esports betting platforms, saw iGaming as “ripe to disruption.” His thesis: the mechanics that keep players hooked in mobile free-to-play games could be applied to sportsbooks and casinos. That idea became SavageTech, a gamification layer that overlays an operator’s platform with a customizable avatar that levels up, collects loot, and unlocks bonuses as customers play. The company recently closed its seed round, bringing on notable investors including former Pinnacle CEO Paris Smith, and will launch with new brands this fall.

Zoom in: SavageTech’s integration is simple: once a user logs in, an avatar appears in the sportsbook and walks them through a tutorial. From there, every wager generates “action points” that power the avatar’s journey. Players can earn themed items—like legendary football boots or fire swords—as part of the experience. “Compared to more traditional gamifications out there, we turn this layer into its own little game,” Lemke said on The BettingStartups Podcast. Operators, he added, are desperate for differentiation in a market where “sportsbooks look like colored Excel sheets.” Early trials with Asian operators showed strong retention results on repeat deposits, though the first version proved “too complex” for non-gamers. The product has since been simplified.

Why it matters: For operators, SavageTech offers more than just a retention tool—it aligns incentives. The company’s model combines a flat fee with a share of GGR from users who opt in, ensuring both sides benefit from better engagement. Lemke envisions the avatar evolving into something like iGaming’s version of Microsoft Clippy: a companion that not only entertains but guides players through the funnel and reduces friction. In a market where customer loyalty is only as strong as the next bonus or line, SavageTech sees gamification as “the one big difference maker” that can keep players engaged beyond promotions.

Listen to the full podcast on YouTube, Spotify, and Apple Podcasts.

News, money, and alpha

• Heading to G2E this year? Check out our G2E Survival Guide from 2023.

• Front Office Sports reported that Kalshi and Polymarket sought to buyout prediction market platform Novig.

• StatRankings, a data hub for sports, bettors, and fantasy players, has secured an undisclosed investment from SK Ventures.

• iGaming veteran James Burns (former: DraftKings, William Hill) has launched Skillcade, a new platform for two-person, real-money gaming.

• 4casters, the invite-only, P2P exchange for pro sports bettors, recorded its largest month ever with $80M in matched volume.

From the studio

Catch up on the latest episodes of The BettingStartups Podcast.

• Bringing gamified avatars to iGaming w/ Tom Lemke of SavageTech

• Tracking over $10 billion in verified bets w/ Pranav Tadikonda from Pikkit

• Creating the ultimate sports remote w/ Tony Ryan from Bet Caddy

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Are you a startup in real-money gaming looking to announce a new product launch, partnership, or funding round? Get it on our radar! Email: [email protected]