DraftKings is bringing Simplebet’s in-play betting and AI-assisted capabilities in-house in its latest major acquisition.
The operator announced Wednesday it has entered into an agreement to acquire the sports betting provider of in-play micro-betting content and pricing. The merger has already been approved by each company’s board of directors but is pending regulatory approval.
DraftKings already held a 15% stake in Simplebet through a partnership struck in 2021 that enabled the operator to launch real money micro-betting across the DraftKings Sportsbook. Now, DraftKings has brought another core piece of its technology in-house.
The announcement did not include any financial details about the transaction.
Founded in 2018, Simplebet is a leading B2B provider of micro-market pricing for major sports such as the NFL, MLB, the NBA, the NHL, NCAAF and NCAAB. Its algorithmic approach is a foundation of many operators’ live betting platforms, including Caesars, bet365, ESPN Bet, Hard Rock Bet and FanDuel.
The announcement noted that, once combined, Simplebet and DraftKings’ respective proprietary libraries and platforms “will present an opportunity to step-change DraftKings’s machine learning operations.” Simplebet’s machine-learning models will allow DraftKings, the second-largest mobile sportsbook in the U.S. by market share, to offer highly accurate betting opportunities during every moment of a game.
“Live betting represents an area for potential growth for online sports betting, and the proposed acquisition would allow DraftKings to leverage Simplebet’s proprietary technology to create an in-play wagering experience that moves at the speed of sports,” DraftKings Chief Product Officer Corey Gottlieb said. “And, while we continue to elevate our product offering in this space, we are also committed to building technology that supports our robust consumer protection standards.”
Rumors of Simplebet acquisition prove true
The announcement confirms reports from as far back as May that the deal worth between $120-$150 million was in the works.
The appeal to DraftKings of bringing Simplebet in-house is clear. Several sources. including data company Sportradar, have suggested that micro-betting is the fastest-growing segment of in-play betting in the U.S. market right now.
Simplebet reported in May that its betting volume, betting handle and number of unique users had all more than doubled since the start of the current MLB season. The company credited those increases to higher demand for in-play betting and micro markets.
“Joining forces with our long-term collaborators at DraftKings will further the Simplebet mission to make every sports moment matter,” added Chris Bevilacqua, Simplebet co-founder and CEO. “This transformative acquisition, upon completion, will marry our best-in-class AI and machine learning technology with the DraftKings product offering, enhancing the customer experience for a new era of real-time, in-play gaming.”
DraftKings’ M&A year continues
The acquisition will be DraftKings’ latest M&A move of a busy 2024.
In May, the Boston-based operator showed it is not afraid to spend big money, buying digital lottery courier Jackpocket for $750 million.
At that time, CEO Jason Robins said that the Jackpocket acquisition allows DraftKings to get a strong foothold in the U.S. lottery vertical. Robins also said the deal provides a big opportunity for DraftKings to cross-sell customers between iLottery, online casino and mobile sports betting.
Earlier this year, DraftKings also acquired oddsmaker SportsIQ Analytics in a deal reportedly worth around $50 million and $70 million. The operator also sold VSiN back to its original owners in July.
DraftKings reported on Aug. 2 that it saw revenue rise in Q2 2024, primarily due to factors including strong customer acquisition and engagement and geographical expansion of its sportsbook. At that time, before the Simplebet acquisition but when it was already in the works, Robins projected $900 million to $1 billion of adjusted EBITDA in 2025 based on 2024’s growth so far.
