(By Michael Murphy, CEO of Cafrino)
From a $200K Seed to Industry Domination
In May 2014, with an investment of $200,000 raised from friends and family—our first and only investment—Cafrino was born. Reflecting on the accomplishments we’ve made since our humble beginnings is a testament to our resilience, resourcefulness, and the massive potential we predicted within this market. But the road to success was anything but easy.
A Decade of Learning, Pivoting, and Winning
My journey into gaming began long before Cafrino. In 2011, after over a decade in the video game industry with Sony, I joined NYX Gaming, where I quickly adapted to casino-style gaming. With my fresh perspective and deep understanding of user behavior and engagement, I helped them transform product performance, user activity and, ultimately, revenue.
At the time, the goal was to position our primary product, NLOP (National League of Poker), as a leader in the online poker space, when Real Money Gaming (RMG) became legalized in Nevada. But competition was fierce, and three companies beat us to market. Unfortunately, due to the biggest challenge in online poker: player liquidity, a critical component to success because without enough active players to keep games constantly running, even the best platforms crumble.
Recognizing the challenge, we pivoted early. Instead of chasing the RMG model, we embraced a sweepstakes-based, free-to-play approach—one that allowed us to legally operate across the U.S. This decision proved to be the key to our long-term success.
By 2014, we had overtaken two of our top competitors (TexasHoldem.com and PurePlay Poker) and solidified ourselves as the leader in the space. Meanwhile, the RMG platforms that initially outpaced us—Ultimate Holdem and Real Poker (South Point Casino)—collapsed due to their inability to sustain player liquidity.
Cafrino’s Acquisition and The Road to Profitability
In May 2014, I was approached by investors who had backed another sweepstakes-based poker platform—Cafrino. The original creators had left the company due to their inability to monetize the product, and I was brought in to revive and rebuild the product from the ground up.
With zero funds and zero revenue, we raised $200K from friends and family and got to work. By October 2014, we soft-launched a brand-new version of Cafrino, closely modeled after our NLOP success. The result?
By 2018, our dominance was undeniable. We acquired our top competitor—NLOP.com—bringing everything full circle. In 2019, we consolidated all players onto the NLOP platform while maintaining Cafrino as our corporate brand.
Pivoting and Thriving in an Evolving Market
When the advertising industry slowed in 2019, we pivoted to VIP subscriptions, leading to our most profitable year ever. Then came 2020, and with it, the pandemic. Instead of retreating, we doubled down on technology upgrades, launching new browser and desktop platforms and native mobile apps for Android and iOS.
This move ensured our players could play anywhere, anytime, and it set us up for continued success as the market evolved.
2023-2025: The Boom of Sweepstakes Gaming
By 2023/2024, the industry took notice. An influx of new products flooded the market, primarily focused on sweepstakes-based casino slots. The biggest shift? Banks, investors, and gaming leaders finally realized what we had known all along—sweepstakes gaming is 100% legal, and players love it as an alternative to Real Money Gaming.
Fast forward to 2025, and the industry has exploded. New casinos are launching weekly. What was once a niche market is now one of the most sought-after investment opportunities in gaming.
I recently returned from Next.io Gaming Summit in NYC, where many topics on gaming were covered but Sweepstakes Gaming was a part of nearly every discussion. A massive interest in the industry has arrived, and the race to claim a stake in this “new” market is on.
The Next Chapter for Cafrino
With a decade of leadership in the space, Cafrino is poised for its biggest expansion yet. In Q2 we will be launching two game-changing products that will redefine the sweepstakes gaming industry once again.
Whether you are interested in partnering and adding poker to your Casino, interested in starting your own Social Casino, or simply an investor looking to capitalize on one of the fastest-growing segments in gaming, now is the time to get in.
💬 Let’s talk. Reach out to me directly to schedule a meeting and learn how Cafrino is leading the next wave of sweepstakes gaming innovation.
Decades of experience in providing quality online gaming content and technology, while servicing over 1.5 million satisfied players.