DubClub, a Chicago-based startup founded in 2021, addresses the information asymmetry in sports betting by connecting amateur bettors with professional handicappers. 

According to the American Gambling Association, the American sports betting market generated $10.9 billion in revenue in 2023 for casinos, sportsbooks, and iGaming. 

DubClub CEO Ryan Gaertner says this profitability stems from the structural disadvantage faced by average bettors against sportsbooks.

“[Sportsbooks] have more data than the average person,” Gaertner told TechCrunch. “Those companies make money when people lose.”

DubClub’s platform allows users to subscribe to content from professional “cappers” – industry experts who research and pick winners using proprietary handicapping systems. 

The company vets these creators to mitigate the risk of scams, a persistent issue in the handicapping profession. Subscribers receive information through text, email, or Discord.

How DubClub Rose in Popularity

The idea for DubClub emerged from a conversation between co-founders Andrew Daschbach and Lewis Burik about the challenges of finding reliable handicapping information. 

Gaertner recognized the potential to streamline the fragmented and often unreliable process of accessing expert betting advice.

DubClub recently raised $7.5 million in a Series A funding round led by Renegade Partners to expand its platform, which has already attracted over 1 million subscribers.

“DubClub has already facilitated over $50 million in subscription payments, processed over 5 million transactions, and connected hundreds of thousands of people through expert sports analysis,” Roseanne Wincek, co-founder and managing director at Renegade Partners, said in a news release.

Wincek views DubClub as a vertical SaaS opportunity in the growing sports betting market, which, according to him, is projected to reach $30 billion in the coming years.

Despite the growth potential, the gambling industry remains controversial due to addiction concerns. Gaertner told TechCrunch that DubClub targets casual bettors and explores features to set user spending limits.

The startup faces competition from established platforms like BetFirm and SportsCapping. Nevertheless, Gaertner envisions expanding DubClub’s offerings to include social features for bet discussions.

In March, Jake Paul made a big bet on the sports betting industry with his startup Betr Holdings Inc. The company raised $15 million in a financing round and reached a valuation of $375 million as it prepared to enter the gambling industry.