Slips raises $3.5M as peer-to-peer betting gains momentum to challenge traditional sportsbooks

Slips just closed a $3.5 million seed round, and it’s doing something few betting startups dare to try: cutting out the house entirely.

The round was led by Las Olas Capital and Sunset Bay Capital, with backing from Andrew Schwartzberg, co-owner of the Charlotte Hornets and Leeds United, plus a group of strategic investors who see promise in Slips’ player-first model. The timing makes sense. The company reports more than 500% year-over-year growth as bettors seek alternatives to sportsbooks that consistently maintain an edge.

Slips runs on a simple idea. Every wager happens between two people. No centralized odds. No platform betting against users. Someone wins every time. The company offers formats such as Heads Up, Pools, Tourlays, and AI-generated peer markets, where players go head-to-head. It feels closer to fantasy leagues and friendly wagers than traditional gambling apps.

“We’re pioneering a new model for betting — one that’s peer-to-peer at its core,” said Jess Richman, founder and CEO of Slips. “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.”

With $3.5M in Funding, Peer-to-Peer Betting Startup Slips Aims to Take on Traditional Sportsbooks

Slips

That social layer seems to be driving adoption. Richman says many users don’t return once they try peer-to-peer betting. “We’re seeing strong, organic demand,” she added. “Once players experience peer-to-peer — where your take matters and someone always wins — it’s hard to go back.”

Where Slips really stands out is offline. The platform supports geo-based groups at bars, stadiums, private clubs, and recreational sports communities. Think pickleball tournaments, golf outings, or watch parties where people can place friendly wagers with others on-site. Users can see who’s nearby, track winnings, and cash out inside the app. Venues use it as a fan engagement tool, offering betting as a perk rather than a revenue engine.

“Peer-to-peer is even more powerful in real life,” Richman said. “We’re turning live moments into shared competition — on site and on platform.”

The new funding will go into product, engineering, and growth. Slips recently rolled out ACH payouts, which unlocked faster access to funds. That move paid off. Premium memberships jumped more than 300% in the first month after launch. The company is now exploring crypto payments, stablecoin withdrawals, and early steps toward international markets.

“This is still early,” said CTO and co-founder Gurminder Singh. “This capital helps us move faster on infrastructure, financial rails, and real-world integrations that unlock scale.”

Slips sits at the intersection of social gaming and betting, a space that continues to draw users away from legacy sportsbooks. It’s betting that people would rather challenge friends than fight algorithms. If growth keeps up, that bet might pay off.