Slips Raises $3.5M to Take Peer-to-Peer Betting into the Real World

LOS ANGELES, CA – January 15, 2026 – Betting platform Slips announced today it has closed a $3.5 million series seed round to accelerate its vision for a social, peer-to-peer (P2P) wagering ecosystem. The funding round, led by Las Olas Capital and Sunset Bay Capital, signals significant investor confidence in a model that directly challenges the traditional sportsbook industry by removing the house from the equation.

The investment also includes participation from prominent figures such as Andrew Schwartzberg, co-owner of the NBA's Charlotte Hornets and England's Leeds United Football Club, adding strategic weight from the world of professional sports. Slips is positioning itself as a transparent, community-driven alternative where every wager is a direct contest between users, ensuring a winner in every bet.

"We're pioneering a new model for betting — one that's peer-to-peer at its core," said Jess Richman, Founder & CEO of Slips, in a statement. "By removing the house and letting players compete directly, we've created something more transparent, more social, and more aligned with how people naturally want to play."

A New Era of Wagering

At the heart of the Slips platform is a fundamental departure from the established sports betting industry. Unlike traditional sportsbooks that set odds and profit from player losses—a model often referred to as betting against "the house"—P2P platforms function as marketplaces. They connect users who wish to take opposing sides of a bet, taking a small commission on the winnings rather than profiting from the outcome.

This model is not entirely new, with established betting exchanges like Betfair and Smarkets operating in mature markets for years. However, Slips aims to differentiate itself with a "social-first" ethos, offering engaging formats like Heads Up direct challenges, Pools, and Tourlays that encourage community interaction. The company claims this approach is resonating with users, citing over 500% year-over-year growth as evidence of a growing appetite for more player-centric competition.

"Once players experience peer-to-peer — where your take matters and someone always wins — it's hard to go back," Richman added, highlighting the platform's sticky appeal. This momentum suggests a burgeoning market segment for bettors seeking transparency and a greater sense of agency, moving away from the often-opaque operations of legacy sportsbooks.

From Digital to Dive Bar: Betting in the Real World

A key component of Slips' strategy, and a major focus for its new capital, is the expansion of its platform into in-real-life (IRL) social settings. The company is moving beyond the purely digital experience by creating geo-located betting groups for bars, stadiums, private clubs, and even recreational sports leagues centered around activities like padel, pickleball, and golf.

This unique feature allows attendees at a live event or members of a club to create and join betting pools, challenge each other on tournament brackets, or wager on individual matchups, all within the app. The vision is to transform passive spectatorship into active, shared competition. For venues, Slips is pitching a B2B engagement platform that can be offered as a value-added benefit to enhance customer experience and build community.

"Peer-to-peer is even more powerful in real life," Richman explained. "We're turning live moments into shared competition — on site and on platform." This strategy taps into a powerful consumer trend, particularly among younger demographics, who increasingly prioritize tangible, shareable experiences over purely digital interactions.

Navigating a Complex Regulatory Gauntlet

Despite the innovative model and fresh funding, Slips faces a formidable and fragmented regulatory landscape in the United States. Since the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018, the authority to legalize and regulate sports betting has fallen to individual states. This has created a patchwork of laws that presents significant hurdles for any national betting platform.

While some states like New Jersey have explicitly legalized P2P betting exchanges, many others have not, and a handful maintain outright bans. Furthermore, federal laws such as the Wire Act, which restricts the transmission of betting information across state lines, can severely limit the liquidity of P2P platforms. This often forces them to operate within siloed, state-specific user pools, making it harder for users to find a match for their bets.

As Slips scales nationally, it will have to navigate these complex compliance requirements on a state-by-state basis, a costly and time-intensive endeavor that has challenged even the largest players in the industry.

Fueling Expansion with Advanced Financial Rails

The $3.5 million in proceeds will be used to deepen the company's technology stack, expand its product and engineering teams, and accelerate user acquisition. A significant portion of this investment is earmarked for building out advanced financial infrastructure, a crucial element for improving user trust and accessibility.

Slips recently saw a more than 300% increase in premium memberships in the month following its launch of ACH payouts, underscoring a strong user demand for faster and more convenient access to funds. Building on this success, the company is exploring crypto payment support and stablecoin-based withdrawals.

This forward-looking financial strategy aligns with the background of its investors. Lead investor Sunset Bay Capital holds a portfolio with notable exposure to crypto-related companies, suggesting a shared vision for integrating digital assets into the platform. However, this path is also fraught with regulatory risk. The legal framework for cryptocurrencies in the U.S. remains uncertain, with recent legislative efforts in the Senate facing setbacks.

"This capital helps us move faster on infrastructure, financial rails, and real-world integrations that unlock scale," noted Gurminder Singh, CTO and Co-Founder of Slips. This push into next-generation payment systems, combined with plans for international expansion, demonstrates a bold ambition to create a more fluid and accessible global betting market. This fresh capital provides the fuel, but the path to reshaping how America bets will require navigating a complex maze of technology, regulation, and consumer behavior.