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The Money Behind Golf Betting
Substack
·
Jul 25, 2022
Every Monday, I write a newsletter breaking down the business in golf. Welcome to the 28 new Perfect Putt members who hav...
Problem
Golfers are going cashless
...but golf lacks a centralized platform for it's players and fans to transact both on & off the course
- Tracking and settling on-course wagers still takes place with pencil & paper
- Golfers aren't centrally rewarded for all of their spend & play
- Golfers lack a platform to discover new and existing brands where their dollars already exist
Solution
Golf's Digital Wallet
At the intersection of fintech, sports, and culture
Product
Building from wagers to rewards cards, e-commerce, and more
On-Course Wagers
Our current product in market
Our initial customer acquisition engine, built to solve pain points around coordinating, scoring, and settling real-money on-course matches.
Card Issuance & Rewards
Early 2023
We will introduce a card designed specifically for golfers.
With each purchase, customers earn instant rewards directly to their LoopGolf wallet.
Commerce Discovery
Late 2023
Using house money, golfers can discover and purchase the latest drip from in and around the game.
Win money, buy new swag, instantly.
Pro Wagers
Early 2024
Online sports betting is going vertical — and we believe the future of this experience is both social and live.
Traction
The golf industry
is taking notice
Media outlets have taken notice of what we're building. We were featured in golf's largest media outlet, Golf Digest; a weekly newsletter Perfect Putt; and two podcasts, Fade&Fairway and Tossing Clubs.
While pre-product, we've grown a strong community — both on social media and within our early access email list — in order for folks to receive product updates and our weekly newsletter,The Sunday Sweat.
With our product, you receive maximum utility by inviting one or more peers to download and onboard to the product. This means the followers and email subscribers we've gained equate to a multiple of 2x or 3x in customers acquired in the future.
Business model
Monetized across
multiple channels
LoopGolf will be entirely free for customers to download and conduct matches with their peers. Below are ways in which we will earn revenue.
| Instant Deposits |
|---|
| Customers are charged 1.75% if they would like to cash funds out of the LoopGolf wallet and receive those funds instantly. Customers could also select a slow cash out option for free. |
| Interchange |
|---|
| Each time a LoopGolf card is swiped, we earn a portion of the transaction as interchange revenue. |
| Affiliate Fees |
|---|
| When customers click on a link to a product or makes a purchase, we earn an affiliate fee for driving traffic to the brand. |
| Commission |
|---|
| When our customers place a professional wager, LoopGolf earns a portion of the amount being wagered. |
Market
38M golfers in the US
257M rounds played annually
—
Avg. household income of a golfer: $100k+
—
Avg. household income of a PGA TOUR fan: $200k+
—
Nearly 80% of golfers use their phone while on the course
Why now?
Competition
We are up against
old fashioned pencil, paper, and cash
While many other industries have shifted to a cashless economy, golf has lagged behind.
The problem is, FinTech products do not understand pain points for golfers; and folks in the golf industry lack the expertise in FinTech.
We understand both.
Impact
Green is our favorite color
As a digital wallet, we have a unique opportunity to provide the tools in-app to impact and grow the game of golf through charitable donations.
We are committed to facilitating customer donations to "greener golf" initiatives, as well as organizations that focus on youth development, accessibility, and inclusion.
Funding
Notable Investors:
- Acorns Founder
- Green Dot Founder
- Early Investor in PointsBet
- Outfielder for the Oakland A's
- Sports Agent
Founders
Founders who know payments
Thomas Reinholm Matt Rum |
We learned a lot at Block Inc. when it comes to acquiring customers for consumer FinTech products, the main hurdle for mass adoption of a digital wallet. What is different about LoopGolf is the ability to lead with on-course wagers as the tip of the spear, first solving key pain points for our customers.
Our origin story started from feeling the pain points of coordinating, scoring, and settling ourselves. We couldn't find anything built for the players about that action — so we set out to build it.
We soon realized that our initial product is just the beginning.
