DraftKings to acquire microbetting provider Simplebet

Sports betting giant DraftKings has agreed to acquire Simplebet, a sports betting technology provider focused on in-play micromarket content and pricing, as part of its push to enhance its live betting offerings. The financial terms of the deal were not disclosed.

The acquisition is subject to gaming regulatory approvals and other customary closing conditions, DraftKings said on Wednesday.

By integrating Simplebet’s proprietary machine-learning models into its platform, DraftKings aims to improve the speed and accuracy of its in-play wagering capabilities, providing bettors with more opportunities to place bets in real-time during games.

“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,” said Corey Gottlieb, Chief Product Officer at DraftKings.

Simplebet, founded in 2018, is a leading player in the microbetting market, which allows users to bet on individual events during a game, such as the outcome of a specific pitch in baseball or a football play. The New York-based company saw significant growth in the 2023-24 NBA and NFL seasons, with microbetting on the rise across the industry.

According to the Associated Press, North American president of data company Sportradar AG Andrew Bimson said microbetting is the fastest-growing segment of in-play betting and could generate a handle of up to $20 billion by 2027.

“Joining forces with our long-term collaborators at DraftKings will further the Simplebet mission to make every sports moment matter,” said 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.”

The Simplebet deal is part of a broader strategy by DraftKings to enhance its technology and capabilities through acquisitions. Earlier this year, the Boston-based sports betting giant acquired digital lottery company Jackpocket and SportsIQ Analytics, strengthening its portfolio as competition intensifies in the U.S. sports betting market.

As the second-largest U.S. sports betting operator by market share, DraftKings’ acquisition of Simplebet positions the company to further differentiate its product in a fiercely competitive industry where live betting could become increasingly crucial.