DraftKings could be on the verge of acquiring micro-betting provider Simplebet.
As reported in the Earnings+More newsletter, multiple sources claim that a deal is close and is set to be worth between $120 million and $170 million.
DraftKings already has a 15% stake in Simplebet that it secured when it partnered with the company in 2021, launching real money micro-betting across the DraftKings Sportsbook. As well as DraftKings, Simplebet has partnerships with several other operators including Caesars, Bet365, and Hard Rock Bet.
It is thought that the financials of the deal could be complicated by the fact that the sale price is likely to be below the $210 million achieved by the company following a $28.6 million Series C funding round that was completed in 2021.
Simplebet reported this week that both its betting volume and its total handle have more than doubled since the start of the current MLB season. The New York City-based company took more than seven million bets from the start of April until the midpoint of May, more than double the number recorded across the same period last year.
The company’s handle has also increased by more than 120% year-over-year in the last month and a half, fueled by a similar jump of 115% in unique users compared to a year ago. The company credited those increases to a bigger demand for in-play betting and micro markets.
DraftKings’ busy start to 2024
The news comes hot on the heels of DraftKings’ acquisition of odds makers Sports IQ Analytics. Although specifics have not been made public, sources suggest that the deal was priced between $50 million and $70 million.
Earlier this week, the operator also completed its $750 million acquisition of lottery courier Jackpocket and will now begin to integrate the company’s products into its operations. DraftKings believes the acquisition will allow it to tap into the U.S. lottery vertical while bolstering its customer acquisition capabilities.
In an earnings call following the announcement, DraftKings CEO Jason Robins highlighted the value of acquiring Jackpocket’s customer database and the power for cross-selling. He cited research that found online lottery players are much more likely to play other verticals such as sports betting and iGaming.
DraftKings expects the deal to drive up to $340 million growth in incremental revenue and up to $100 million in incremental adjusted EBITDA in the 2026 fiscal year
