Midnite Aims for Further Expansion With $35m Series C Funding Round

Midnite has raised $35 million (£26.1 million) in Series C funding, in a round led by investment and strategic advisory firm the Raine Group, with the operator seeming undeterred by regulatory issues that could block its path to becoming a tier one UK operator.

The round included existing investors such as Play Ventures, Discerning Capital, Makers Fund and Big Bets, taking Midnite’s total equity funding to more than $75 million.

This comes after Midnite announced it had secured a $100 million credit facility in October from Discerning Capital, which was a Series B investor, with a view to using the funding to expand Midnite’s marketing efforts.

What’s the funding for?

The funds raised from the Series C funding will be used to scale operations, accelerate development of Midnite’s products, and support international expansion. Midnite will continue to build out its product team, while its engineering teams will remain onshore in the UK.

Midnite’s sportsbook launched in 2018 after being founded by Nick Wright and Daniel Qu, who both created daily fantasy sports platform Dribble.

Horseracing and casino products launched in 2023, and while Midnite is not exactly a new player in the UK market at this point, it has particularly made its presence felt since the start of last year.

Midnite is currently the sponsor of the World Snooker Championship and was recently announced as a sponsor of the Johnstone’s Paint Masters in December.

A play for tier one

Nick Wright, Co-founder of Midnite, said: “We’re thrilled to have the continued support of some of the best investors in gaming. Our product-centric approach is what has got us to where we are today, and we will continue to place the experience of our players as our highest priority.

“This capital enables us to hit the gas and accelerate our growth strategy as we pursue tier-1 operator status, investing heavily in our product team to truly disrupt the industry with a challenger brand platform for a new generation of players.”

John Salter, Co-founder and Partner of Raine, said:

“We’re pleased to deepen our relationship with Midnite as it continues to develop its product portfolio and grow at scale. The Midnite team has a clear vision, with the dedication and passion necessary to be an industry leader in product innovation.

"We look forward to seeing what comes next as Midnite paves the path forward for the next generation of players.”

UK tax issues

In November, UK Chancellor Rachel Reeves confirmed that from April 2026, remote gaming duty, paid on bets on online casino games, will rise from 21% to 40% of gross profit.

There will also be an increase to general betting duty, paid on online sports bets, which will go up from 15% to 25% of gross profit from April 2027; bets on horseracing will be exempt from this.

With that in mind, it will likely be difficult for any of the younger operators in the market to gain cut-through, due to the additional costs. There is an argument that some of the more recent entrants to the market will not be impacted as heavily by the increases, as they will not be as concerned with cutting existing workforces or scaling down more established operations.

This is something Justin Park, Co-founder of Betty, alluded to when announcing the operator has applied for a license from British regulator the Gambling Commission. Park said:

“We’ve already seen how a changing regulatory landscape allowed nimble teams - like Midnite - to start taking material market share. Instead of spending years refactoring legacy code just to stay compliant, they've managed to focus on delighting players through product innovation.”