DraftKings has announced an agreement to acquire online micro-market betting content and pricing provider Simplebet.
The acquisition proposal has been approved by the boards of both companies and is currently awaiting regulatory approval and other standard closing conditions.
The transaction aims to integrate Simplebet's machine learning models into DraftKings' existing platform. This integration is expected to enhance the speed and accuracy of live betting, reportedly making betting during live sports events more precise and dynamic.
DraftKings aims to improve the overall quality and efficiency of its betting products through this acquisition.
DraftKings Chief Financial Officer Corey Gottlieb stated, "Live betting represents a potential growth area in online sports betting, and the proposed acquisition will enable DraftKings to leverage Simplebet's proprietary technology to create a live betting experience that evolves in sync with sports events."
Founded in 2018, Simplebet focuses on developing micro-market pricing technology for sports like the NFL, MLB, NBA, and NHL. The company uses machine learning and automation to create more opportunities for bettors to place bets on specific moments in a game, such as the next pitch or the next point.
This acquisition comes as DraftKings takes strategic steps to expand its market influence. Despite recent challenges, such as being fined for financial reporting errors in New Jersey, the company reported a 53% revenue growth in the first quarter of 2024.
We said in November 2021...
Keeping it simple
Here, my most specific prediction is that I am willing to publicly declare my belief that Simplebet will become a giant in the industry in the coming years—and will definitely grow further in 2022. No, I am not an employee of the company. Simplebet is a US-based sports betting provider specializing in micro-betting technology; in the simplest terms—please excuse my pun—this means it maximizes the opportunities for betting during a match: the next pitch, the next throw, the next three-pointer. This is both good news and bad news for sports bettors; it gives them plenty of opportunities to bet, but also plenty of opportunities to lose, lose, lose.
Major operators will love this technology; and many operators have already fallen for it, with DraftKings and FanDuel collaborating with the company in its early stages. Not only that, former MGM Resorts International CEO Jim Murren has joined the company's board, and even YouTuber and boxer Jake Paul's investment company participated in the company's $30 million Series B funding. As the North American sports betting market matures, operators will look for fast, cutting-edge technology that can maximize efficiency in various ways. So, keep an eye on this space—and keep an eye on Simplebet.
