(Bloomberg) -- Betr Holdings Inc., the sports-betting startup co-founded by social media star and boxer Jake Paul, has raised funds at a $375 million valuation as it prepares to ramp up gambling operations.

The $15 million financing round set to be announced Wednesday was led by venture capital firms Harmony Partners and 10X Capital. Existing investors include Fuel Venture Capital Partners, Aliya Capital Partners and Eberg Capital. The new round brings Betr’s total funding to $100 million.

Betr started operating in 2022, with Paul declaring that the existing sportsbooks needed influencers like him to draw users and that it was his turn to “take over from the dinosaurs.” Early efforts focused on creating a media arm to build a fanbase as the company developed betting products.

Sportsbooks — even the ones without influencers — are growing rapidly as more states legalize their products, and new entrants like Betr are eager to take advantage. The US sports-betting industry had nearly $11 billion in revenue in 2023, up 45% from the year prior, according to the American Gaming Association.

Earlier this year, Betr launched a real-money fantasy sports product — a sector with fewer regulatory hurdles than traditional sports betting — in 24 states. It’s running a beta test for its sportsbook in Ohio and Virginia and hopes to launch the full product in states such as Colorado, Kentucky and Indiana before the National Football League kicks off its season in September.

“We ultimately plan on being a nationwide sportsbook brand,” Betr Chief Executive Officer Joey Levy said in an interview. “We want to build profitable businesses in each state before adding incremental license fees, market access fees and overall expenses.”

Levy, also a co-founder of Betr, said the company will spend the fresh funding on user acquisition, product development and personnel. Management has brought on more senior staff as it tries to enter more markets, and recently hired former FanDuel Inc. executive Andrew Winchell to lead its regulatory affairs. 

Betr is looking to begin operating another business line, an online casino with slots and table games such as blackjack and roulette, before the end of the year, pending regulatory approval in Pennsylvania.

“This is going to be a very long game,” Levy said. “This industry is going to be in the tens of billions of dollars in revenue by the end of the decade.”

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