DraftKings (NASDAQ: DKNG) announced its acquisition of Simplebet Inc., a company specializing in micro-betting services, aiming to enhance its repertoire of in-game betting products. Although the financial terms of the deal were not disclosed, earlier speculations suggested that DraftKings might pay between $120 million and $170 million for the privately held Simplebet. The two companies already share a business relationship, having collaborated in 2021 when Simplebet provided micro-betting services to DraftKings Sportsbook.
In a statement issued by DraftKings, the company emphasized that the proposed acquisition would enable the integration of Simplebet’s machine-learning models into DraftKings’ cutting-edge pricing and technology platform. This integration is expected to yield precise betting opportunities in real-time during games, improve the quality and speed of data across DraftKings’ operational lifecycle, and deliver a more seamless experience for customers.
Based in Boston, DraftKings is currently Simplebet’s largest client. Simplebet was valued at $210 million following a Series C funding round that raised $28.6 million three years ago.
The acquisition of Simplebet could be a strategic move for DraftKings, as micro-betting, a rapidly growing subset of in-game or live betting, is becoming increasingly popular. Unlike traditional live wagering, where bets are placed on updated totals or spreads, micro-betting allows for more granular bets. For instance, Simplebet’s services enable bets on the outcome of a football coin toss, the result of a single pitch in baseball, and other similar scenarios. This format appeals to bettors due to its binary outcomes and immediate results, providing them the opportunity to quickly reinvest winnings or minimize losses.
In-game wagering has long been a favorite in mature sports betting markets such as Australia and Europe and is gaining significant traction in the U.S. The demand for advanced technology to facilitate live and micro-betting underscores why DraftKings found Simplebet to be an attractive acquisition target. According to DraftKings, Simplebet has created a robust, maintainable platform for live betting that emphasizes algorithms, machine learning, and automation to augment user experience, thereby offering more frequent in-play betting moments.
Founded in 2018 and headquartered in New York, Simplebet is a business-to-business provider of micro-betting markets across college basketball and football, Major League Baseball (MLB), the NBA, NFL, and NHL. Besides DraftKings, Simplebet’s roster of clients includes notable names like Caesars Sportsbook, ESPN Bet, FanDuel, Hard Rock Sportsbook, and others.
It remains to be seen whether these operators will continue their associations with Simplebet post-acquisition or seek similar services from Simplebet’s competitors.
