Midnite secures $100m finance deal to accelerate growth and disrupt UK iGaming sector

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Midnite, the hyper-growth UK sportsbook and casino, has announced it has received a credit financing deal worth up to $100m from House Advantage Fund (“HAF”) to facilitate its continued growth in the UK iGaming market and continue its push to become a tier-1 operator.

The revolving credit facility is provided by HAF, the specialised user acquisition financing strategy, provided by Discerning Capital, a leading Las Vegas-based growth capital investment firm that focuses on the regulated gambling and gaming sectors, which led Midnite’s Series B funding round earlier this year, and PvX Capital, a Singapore-based financial services firm focused on user acquisition financing for consumer apps.

With access to user acquisition funding, Midnite can grow and simultaneously build a cash reserve for non-marketing investments. These cash reserves can then be used flexibly and strategically to invest in growth initiatives such as accelerated hiring and product development while their top line revenue continues to grow.

HAF allows for continued growth and investment into user acquisition with the traditional financial constraints that remain prevalent in the broader gaming industry. Furthermore, credit financing removes the risk of unnecessary dilution when scaling at speed.

Nicholas Wright, Midnite’s Chief Executive Officer, said: “This partnership allows us to triple down on both performance and brand marketing campaigns, while preserving cash for innovation and expansion. The flexibility of the House Advantage structure means we can pursue our long-term strategy with greater conviction and fewer trade-offs.

“This arrangement also signifies the strength of the partnership Midnite has with Discerning Capital. The confidence the team has in what we are doing at Midnite allows us to strive for continued growth and execute our strategy to disrupt the gaming industry for good.” 

Commenting on the deal, Davis Catlin, Managing Partner at Discerning Capital, said: “For too long, the growth trajectory of online wagering operators has been constrained by the limitations of traditional venture capital or credit, which is hard to obtain across the broader gaming ecosystem. 

“By tying capital deployment to actual marketing performance, we unlock sustainable, aggressive scale without forcing operators into unnecessary equity dilution or onerous repayment structures. This credit facility for Midnite sets a new benchmark for how ambitious firms in our sector can finance growth.”

In April, Midnite announced the close of its successful series B funding round. Worth $10m, the funding round was led by Discerning Capital, the Raine Group, and Play Ventures, with additional investment from Venrex and Big Bets. This brought Midnite’s total capital raised to more than $35m.

Midnite’s sportsbook was launched in 2018 by Nick Wright and Daniel Qu, who previously created daily fantasy sports platform Dribble in partnership with Sky Bet. Midnite added horse racing and casino to the product mix in 2023 and Midnite’s team has grown from 60 to 150 over the past 12 months.

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