DraftKings agrees undisclosed deal to acquire Simplebet
US giant follows up Sports IQ purchase with acquisition of micro-betting supplier as bosses hail “faster and more frictionless experience” for users
DraftKings has struck a deal to acquire sports betting supplier Simplebet for an undisclosed sum in a bid to ramp up the operator’s in-play capabilities.
The proposed transaction to snap up the micro-betting provider has been approved by both the DraftKings and Simplebet boards.
DraftKings did not reveal any financials related to the acquisition.
DraftKings said the transaction would allow for the integration of Simplebet’s models into its pricing and tech platform, which would in turn deliver “highly accurate betting opportunities” for customers.
The New York-listed firm said: “The proposed transaction would improve the quality, breadth and speed of data throughout the DraftKings trading lifecycle, and would unlock a faster and more frictionless experience for the company’s customers.”
The acquisition of Simplebet comes three years after DraftKings first partnered with the supplier on a multi-year deal to bring micro-markets to its sports betting offering.
As part of the original deal, Simplebet’s NFL, MLB and NBA in-play markets were made available to DraftKings users.
DraftKings was also a minority shareholder in the business prior to confirming its acquisition plans, holding around 15%.
Simplebet has also forged partnerships with bet365, Hard Rock Digital, PENN Entertainment, and Caesars Sportsbook.
EGR has reached out to DraftKings to further ascertain how the transaction could impact these supply deals.
In 2021, Simplebet secured $15m in a funding round with investors including former MGM Resorts International CEO Jim Murren.
Underpinned by AI and machine learning, Simplebet was founded in 2018 by Joey Levy, Scott Marshall and Chris Bevilacqua, who remains as the company’s CEO today.
Other senior management within the business include ex-DraftKings VP Mark Nerenberg as COO and chief product officer Andre Bessette, one of DraftKings’ early employees.
The move for Simplebet follows DraftKings’ acquisition of Sports IQ earlier this year as the operator looked to strengthen its online sports betting position.
DraftKings’ recent M&A activity continues a trend of US operators looking to bolster internal capabilities across online sports betting.
In July, Caesars acquired Australia-based pricing specialists ZeroFlucs, while Entain’s £203m swoop for US sports pricing specialists Angstrom Sports in 2023 has been championed by Entain bosses as a core differentiator.
Fanatics’ $225m purchase of PointsBet US included Banach Technology, a Dublin-based odds pricing outfit PointsBet bought for $43m in 2021.
Corey Gottlieb, DraftKings chief product officer, said the acquisition of Simplebet would allow the operator to achieve its in-play betting aims.
Gottlieb added: “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.
“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.”
Simplebet CEO Bevilacqua said: “Joining forces with our long-term collaborators at DraftKings will further the Simplebet mission to make every sports moment matter.
“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 shares were down almost 3% yesterday, 28 August, to $34.35.