Midnite has received a $100 million credit facility in a continued push to reach Tier 1 status in the UK. Funding was provided by Midnite’s Series B investor Discerning Capital. This is a Las Vegas-based growth capital investment firm with a focus on regulated gambling.
Singapore-based PvX Capital also contributed to the financing round. Midnite’s funding was provided via a specialised user acquisition financing strategy. This is meant to help Midnite invest in growth initiatives like talent acquisition and product development.
The vehicle, dubbed a House Advantage Fund (HAF), is a direct lending fund managed by Discerning Capital. Midnite CEO Nick Wright said it could “triple down on performance and brand marketing campaigns, while preserving cash for innovation and expansion”.
The use of a credit facility should remove the risk of unnecessary dilution when scaling the business at speed.
“The flexibility of the House Advantage structure means we can pursue our long-term strategy with greater conviction and fewer trade-offs,” Wright said in a statement on Wednesday.
“This arrangement also signifies the strength of the partnership Midnite has with Discerning Capital. The confidence the team has in what we are doing at Midnite allows us to strive for continued growth and execute our strategy to disrupt the gaming industry for good.”
Midnite closed $10m series B in April
Midnite closed its $10 million series B round in April. This was led by Discerning Capital, the Raine Group and Play Ventures, with additional investment from Venrex and Big Bets. At the time, its total capital raised was over $35 million.
Its UK sportsbook was launched in 2018 by former daily fantasy sports platform Dribble founders, partnered with Sky Bet. Horse race betting and iGaming were added to the product portfolio in 2023. The operator has grown its team from 60 to 150 in 12 months.
It operates its betting and iGaming platform entirely in-house and has licences in both the UK and Ireland.
“For too long, the growth trajectory of online wagering operators has been constrained by the limitations of traditional venture capital or credit, which is hard to obtain across the broader gaming ecosystem,” Discerning Capital managing partner Davis Catlins said of the deal.
“By tying capital deployment to actual marketing performance, we unlock sustainable, aggressive scale without forcing operators into unnecessary equity dilution or onerous repayment structures. This credit facility sets a new benchmark for how ambitious firms in our sector can finance growth.”
Midnite’s latest funding round will help it fund marketing efforts as well as boost product innovation and wider team expansion.