This week: ​​Propellor’s pivot to chat-based AI sports agents and building within “a universal interface”

Propellor’s pivot to chat-based AI sports agents and building within “a universal interface”

The news: Propellor Sports Company has rebranded as Atomic Communications, pivoting away from daily fantasy sports to focus on AI agents built for group chats, CEO Jay Huffman outlined in an investor update shared with BettingStartups. He notes that the company’s DFS product wrestled to break through a crowded daily fantasy market, but its native chat integration consistently delivered the “wow factor” amongst its users. Atomic’s first agents include April, a personal assistant, and Champ, a sports agent that delivers live scores, odds, stats, and even pre-filled bet slips directly into text threads.

Zoom in: Huffman said DFS was too costly and competitive to sustain, but the engagement data gave context into what was working: more than 200,000 messages ran through Propellor’s chat system, and users were quick to show their interest and enthusiasm for the product. In closed-beta testing, Huffman says Champ is already being tagged for odds, analysis, and schedules in a way that sparks group conversations. In one case, a user asking Champ for home run props was delivered a full FanDuel parlay and a link to a pre-populated bet slip, he shared as an example.

Why it matters: The bet behind Atomic is to keep AI where people already spend their time. “Text messages are a universal interface,” Huffman said. “The learning curve there is minimal and the barrier to entry is practically non-existent.” By embedding Champ directly into chats, Atomic aims to stand apart from other sports bots that require a new app or platform. If successful, it could turn chaotic group texts into smarter hubs for live sports and betting activity—right where fans are already talking about the big game.

Billy Bets snares $1M raise for AI sports betting agents

The news: AI-powered sports betting startup Billy Bets closed a $1M pre-seed round led by Coinbase Ventures, with participation from Virtuals Ventures, Contango Digital, CMS Holdings, and a roster of athlete and crypto-native angels. The funding will accelerate the public launch of the Billy Terminal, expand $BILLY token utility, and advance its autonomous betting agents.

Zoom in: BillyBets aggregates prediction markets like Kalshi and Polymarket to surface edges, route wagers to the best available price, and enable customized automated strategies. The Billy Terminal supports natural-language queries—turning prompts like “Show me plus-EV NFL props tonight” into automated execution with real-time ROI tracking. Since its June debut, Billy has routed more than $1M in volume, growing 23% weekly.

Why it matters: The startup says that while sports wagering generates an estimated $250B annually, less than 1% of bets are currently executed by AI agents. Co-founder Joe O’Rourke pins that inefficiency as Billy’s wedge in the market, arguing that just as AI has transformed investing, it’s “now coming for sportsbooks.” 

Rabbet closes $300K pre-seed round for social sports picks

The news: Chicago-based Rabbet has officially launched its social sports picks app after closing an oversubscribed $300K pre-seed round (initially targeting $250K). The platform lets fans compete directly with friends, brands, and influencers in peer-to-peer sports picks without paying house fees.

Zoom in: Rabbet takes the bets out of the group chat and makes them social, customizable, and rewarding. Users can set their own odds and lines, win real prizes, and access free-to-play contests through the app’s new “Promotion HQ” feature, where brands and celebrities sponsor exclusive giveaways. The company leans heavily into community and philanthropy with Sponsored Offers that channel proceeds toward charitable causes. Backers and advisors say this approach positions Rabbet as a fresh, fan-first alternative to traditional sportsbooks.

Why it matters: As sports betting matures, upstarts like Rabbet are finding new ways to reinvent the experience for a different generation of fans. Like we’ve seen recently with BullRush, Betsperts, and MyPrize, social and community-driven models are demonstrating the stickiness that’s increasingly central to consumer-facing brands, and investors are taking notice.

How BetrBet gives sports betting creators “community in a box”

The news: BtrBet is giving sports betting creators what it calls “community in a box,” founder Zach Wick told BettingStartups this week. Originally a bet-tracking tool built for Wick’s sports wagering habits, BtrBet has evolved into a platform where creators can centralize content, discussion, bet tracking, and line shopping—all under their own brand.

Zoom in: Instead of taking a cut of affiliate revenue, BtrBet works to amplify it—automatically inserting links when followers tail picks—while charging a subscription or small tool fee. Wick likens the model to Stripe, aligning incentives so BtrBet only wins when its users win. The company has grown through fast feedback loops and self-funding, shipping features directly from creator requests and aiming for profitability by NFL season’s end.

Why it matters: Affiliate marketing has long powered betting growth, but BtrBet reframes creators as the next generation of affiliates—authentic voices with built-in audiences. It’s a bet that the future of customer acquisition will be driven less by legacy networks and more from digitally native personalities, and the startup is positioning itself at the center of that shift by equipping the latter with plug-and-play communities and monetization tools.

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News, money, and alpha

• G2E Expo Hall passes discounted for our newsletter subscribers—register here for just $75 (normally over $300).

• Pro League Network partnered with FX1 to bring real-time athlete analytics—like strike counts and movement speed—into combat sports broadcasts.

• iBankroll partnered with Rivalry to offer higher limit play and compete for VIPs through its bankroll-as-a-service. 

From the studio

Catch up on the latest episodes of The BettingStartups Podcast.

• Infrastructure for sports betting creators w/ Zach Wick from BtrBet

• Just merged: Pine Sports and SharpSports join forces w/ Vijay Dewan & Ryan Murphy

• The convergence of financial trading and sports betting w/ Trent Hoerr from BullRush

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