ALT Sports Data, a startup founded by former GoPro executives Joe Dunnigan and Todd Ballard, announced on Monday that it has successfully secured $5 million in funding. This investment marks a significant step for the company as it aims to transform the landscape of sports betting by focusing on new and emerging sports, particularly those that have traditionally been overlooked.

The company is dedicated to expanding betting opportunities in niche sports such as Formula 1, X Games, and various extreme sports. By collaborating with sports leagues and sportsbook operators, ALT Sports Data provides the vital data that underpins wagering activities while simultaneously exploring innovative ways to engage fans who are passionate about these less mainstream sports.

In a competitive market dominated by established sports data providers like Sportradar and Genius Sportscompanies that have partnerships with major leagues such as the NBA and NFLALT Sports Data distinguishes itself by prioritizing sports that cater to lifestyle and niche audiences. Todd Ballard, the Chief Marketing Officer of ALT Sports Data, emphasized this point in his discussion with Business Insider, stating, "There are a lot of leagues out there that are not the NFL, the MLB, the NBA, that, quite frankly, I feel have been systemically set up for failure in sports betting because there's just no real innovation or thought put into them."

Among its notable partnerships, ALT Sports Data was recently named the official betting supplier for Formula 1, further solidifying its commitment to catering to emerging sports. Additionally, prominent sportsbooks like FanDuel and DraftKings have integrated ALT Sports Data's offerings into their platforms, allowing for a more diverse betting experience.

Ballard passionately questioned the lack of betting opportunities for popular lifestyle sports, noting, "Why can't we bet on a bunch of these sports like surfing and motocross?" This inquiry underscores the company's mission to fill the gaps in the current betting market and to provide fans of these sports a chance to participate more actively.

The recent influx of $5 million in funding will be utilized to develop additional tools and partnerships designed to enhance fan experience and engagement. The investment round was co-led by Eberg Capital and Relay Ventures, with participation from other notable investors, including Motley Fool Ventures and Scrum Ventures.

ALT Sports Data has identified four key pillars that form the foundation of its business model aimed at boosting sports betting and fan engagement. These pillars encompass:

  • League Services: This includes forging data rights agreements, marketing initiatives, maintaining integrity, and collaborating with sports rights owners. Currently, the company boasts a network of approximately 25 different sports and leagues, covering a wide array of activities such as combat sports, motor racing, action sports, and various niche offerings.
  • Product Development: This division supports the companys league relationships by providing data science, distribution networks, infrastructure, and assistance with game development. Ballard pointed out that in certain instances, they also construct the backend data infrastructure necessary for supporting betting operations within a league.
  • Media Division: ALT Sports Data operates an affiliate website called NXTbets, which utilizes content to guide users toward sports betting platforms. Ballard noted that NXTbets has grown to become a significant contributor to the companys revenue.
  • Game Development: The company is actively working to create its games that will extend beyond traditional sports betting into realms like social gaming, peer-to-peer betting, daily fantasy contests, and free-to-play models. As Ballard explained, "We're not saying we want to exclusively create games just for us. We do think we can show how it should be done."

ALT Sports Data's overarching goal is to create an inclusive ecosystem for fans who may not engage with more popular sports unless its during significant events such as the Super Bowl or March Madness. By targeting and cultivating interest in sports like surfing or the X Games, the company hopes to gradually integrate these fans into the broader sports betting world.

As Ballard continues to articulate, "Emerging niche sports have these massive audiences behind them that are pretty passionate, and give the leagues a new point of engagement, a new opportunity to drive more fans to their sport, and ultimately drive new revenue streams into them." This innovative approach aims to reshape the sports betting industry and unlock potential revenue sources for a diverse range of sports.