Founder Spotlight: Stephen A. Murphy, Boom Entertainment

Welcome to Scrum Ventures’ latest “Founder Spotlight” with Stephen A. Murphy, co-founder and CEO of Boom Entertainment, a company redefining what real-money gaming looks like by creating new ways to bet on sports and reinventing experiences for players.

We recently caught up with Stephen to learn more about his journey from sports reporter to CEO, including how and why he started Boom Entertainment. The conversation highlighted some invaluable lessons for entrepreneurs and provided new insight into how the industry will evolve over the next 5–10 years.

What is your background and what led you to Boom Entertainment?

My background is in sports and gaming. Right out of college, I wanted to be a sports reporter, so I applied for jobs across the country and eventually landed a position as a sports editor for a small newspaper in rural Oklahoma. Pretty soon it became apparent my LA girlfriend at the time (now wife) was not going to be thrilled living in rural Oklahoma, so we moved closer to the west coast — specifically Las Vegas, where I became editor of Card Player Media. I’ve always enjoyed real-money gaming, so this allowed me to dig into the industry. In turn, it also fueled my passion for working with innovators in the sports and gaming business — where I saw huge potential, so I shifted from the editorial side to the business side and joined a casino content creator, High 5 Games

This 4-year stretch at High 5 before starting Boom was where I experienced what it’s like to be a part of something that was scaling quickly. We grew from roughly 20 employees to several hundred in a short time, and being part of the management team provided valuable insights and lessons that gave me the confidence that I could start my own venture someday.

Was there an Aha moment?

Initially, I thought I would join a large company and just try to climb up the corporate ladder. But spending two years in Palo Alto can give you the entrepreneurial bug. While getting my MBA at Stanford, I spent a summer at MGM Resorts, specifically in their online gaming division. At that time, two relatively small companies, FanDuel and DraftKings (now billion-dollar companies), came onto the scene. MGM tasked me with following their growth. While MGM didn’t want to get involved in sports gaming at the time due to regulatory concerns, for me it was like glimpsing into the future. I saw these companies’ immense growth potential and began thinking differently about my career path. I could stay the conventional route with a renowned company like MGM or venture into the startup world. Fortunately, I had mentors in the industry who played a pivotal role in steering me toward starting my own business because they knew my passion for changing the industry and doing big things.

Are there any specific lessons you can point to for entrepreneurs just starting?

Be passionate so you can commit for the long term:

A couple of crucial lessons have stood out for me in the early stages. You need to be willing to play the long game. Great things take time to build. So if you’re going to start a new venture, you need to do it in something you’re passionate about because it may take a decade before you build something truly of value. I often witness other founders who are too eager to start something and try to make it work quickly. But they haven’t thought about whether it’s their passion — making long-term commitment challenging. Passion is essential, and without it, the likelihood of failure increases.

Fortunately, I embarked on a venture that merged my interests in sports and gaming, allowing me to endure both the highs and lows of entrepreneurship.

Always be cognizant of your expenses and balance sheet:

The second piece of advice I offer founders is more tactical: your №1 job as CEO of an early-stage venture is to not run out of money. While it may seem straightforward, just doing this will put you ahead of 99.9% of founders. I received this advice and found it hugely valuable, especially when diving into your first startup. It’s not just about the rapid pace; it’s about methodically building something brick by brick.

What are some of the hardest decisions that you’ve had to make throughout your journey?

I had always heard that one of the hardest things to do in a start-up is to say “No” — an issue we have encountered often. But it’s crucial to do this so you stay focused on your goals. We have had to decline numerous opportunities, even those seemingly promising or aligned with our capabilities, to avoid spreading ourselves too thin.

For instance, we considered transitioning into a direct-to-consumer sports betting company when sports betting legalization began to spread. The prospect of establishing our brand held appeal, but upon closer examination, we realized the significant capital investment required, coupled with spending-happy competition, made this a less appealing choice. Ultimately, we opted to focus on strengthening on our fantasy sports business and our B2B real-money casino gaming division. In hindsight, it was the best decision, even though making choices like this can be challenging.

Where do you see the industry going, and how does Boom fit into this vision?

I like to think about this question in terms of how I see our business. We are not just about sports betting. On a macro level, our vision is about transforming the real-money gaming industry, and within this, there are some pretty big opportunities. The first revolves around creating a much more robust and fun gaming experience. Many sportsbook platforms are rather bland and merely transaction-focused. We believe the products poised for substantial growth in the next five to ten years will center around community-based play — allowing users to engage with friends, share experiences seamlessly, and provide a more entertainment-focused atmosphere.

Beyond sports, we are also exploring opportunities in other real-money games, including gambling and casino games, as this sector is a significant portion of the industry. While many people visit Las Vegas for sports betting or a hand of blackjack, casino games contribute over 70% of the industry’s revenue. Recognizing this, we are actively developing various games tailored for the online space, anticipating that these offerings will prove impactful as the industry expands its online presence.

How did you connect with Scrum Ventures?

I’ve known Mike Proman, head of Scrum’s new Sports and Entertainment Fund, for several years. He has an excellent reputation in the business. However, our direct connection happened recently with this latest funding round, facilitated by mutual friends and colleagues.

What kind of benefits does Scrum provide?

We value Scrum for its global reach and ability to make connections — especially in Japan. Even though our primary focus has been on North America to date, we recognize gaming is a global business, and considering the potential in markets yet to legalize sports betting, such as Japan, we sought investors like Scrum, who could provide valuable connections to these areas. Personally, I appreciate Mike and his team for fostering a personal connection. Looking ahead to our global expansion, having investors with connections in key markets is an exciting prospect, ensuring that when we venture into new territories, we’ll have these connections ready.

Could you share specific highlights or lessons learned from your fundraising process?

The key is to have a business that you know will work. Having a solid business plan is essential, and being able to communicate that is also important, but beyond that, it’s about truly believing in your business, and I genuinely believe in ours. Investors can sense that passion, and, in my experience, very few founders can convince an investor to be enthusiastic about something they’re not excited about themselves. This passion and belief in our business have played a crucial role in attracting great investors to join us on this journey.

What is your philosophy on building culture and retaining great employees?

First and foremost, culture is about your people. If you attract and retain great people, you’ll likely have a strong culture.

We’ve learned a lot in our history about how to build and foster a culture, and we have been far from perfect in that journey, but we always try to be self-aware and reflect on what we can do to improve our work experience.

When hiring, we focus not only on recruiting talented individuals but also those who can integrate into our existing culture and, even more importantly, help grow our culture in new ways. Introducing a new team member who brings a fresh perspective and energy can be exciting, altering, and enriching our dynamic.

Importantly, we try to empower each of our team members. This allows us to attract and retain highly skilled individuals who appreciate autonomy.

How did you build your team?

We have a dynamic team with a blend of expertise — individuals well-versed in the intricacies of casinos and those with a strategic and agile approach to building innovative products. Leveraging the advancements made possible by a skilled team, we are getting the best of both worlds. Our team comprises industry veterans with decades of experience, having crafted commercially successful products in the real-money gaming sector. We also have creatives passionate about sports or gambling, offering a fresh perspective. By bringing these diverse talents into one space, we can develop products that have seen notable success early in our journey.

When it comes to games and innovation, we understand that while innovating is easy, creating something different and successful is the true challenge. We strike a balance between forward-thinking visionaries and seasoned industry professionals who prioritize commercial viability, leading to our strong position in the market.

What are your favorite sports? Do you have any favorite sports teams?

Soccer holds a special place in my heart. I play once a week, and I love this experience — even though as I get older my body doesn’t recover as quickly as it used to. I also genuinely enjoy watching various sports. Growing up, I was a fan of the ’90s Bulls, but now my allegiance lies with the New York Mets and the New York Giants, given my roots in the New York-New Jersey area. However, when it comes to college basketball, I did my undergrad years at Loyola Marymount in LA who have not made it to the NCAA tournament since 1990, but there is always hope.