DraftKings Acquires Simplebet: What this means for bettors
by Tyler Doty | by Tyler Doty
DraftKings Adding to their Arsenal
DraftKings has agreed to a deal to acquire Simplebet in an effort to improve its in-play offering and AI capabilities.
This is the latest in a string of significant moves by DraftKings Sportsbook in 2024 after they acquired digital lottery company Jackpocket back in May. They also purchased SportsIQ Analytics earlier this year.
The purchase of Simplebet is waiting on regulatory approval, but the directors of both companies have signed off on the deal, per DraftKings’ press release.
This hasn’t come out of the blue. It was reported several months ago that DraftKings was close to a deal for Simplebet, and it fits with gaming companies wanting to control as much of their own technology as possible.
DraftKings Improves In-Play Package
Processing data rapidly, Simplebet can deliver odds on in-play markets throughout a game. The company covers NFL, MLB, NBA, NHL and NCAA basketball and football. The aim for DraftKings will be to have a comprehensive, industry-beating product that keeps bettors engaged even when the outcome of the game is wrapped up.
Pairing Simplebet’s proprietary machine learning will be paired with DraftKings’ pre-existing technology and highly competitive pricing to form what could be a market-leading live betting service.
At the start of August, DraftKings CEO Jason Robins spoke about the company’s ambitions for 2025.
“We will continue to capitalize on the healthy customer acquisition environment for the rest of 2024 which positions us to achieve $900 million to $1 billion of adjusted EBITDA in 2025.”
In the press release, Simplebet co-founder and CEO Chris 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.”
Bevilacqua has invested in several successful businesses in the sports and technology sectors, including ThePostGame, Unscripted, and StubHub.
Huge Growth Potential
According to Andrew Bimson, the North American president and chief operating officer for data company Sportradar AG, in-play betting is the fastest-growing sector in sports gambling, and the handle could be as high as $20 billion in 2027.
Crucially for DraftKings, this move also means their competitors lose Simplebet’s services for their live markets. Fellow juggernauts Caesars and Bet365 are among the other sportsbooks that were using Simplebet to run their live betting markets.
Earlier this year, Simplebet announced record-breaking figures for in-play betting on the NFL and NBA. Almost 13 million wagers were placed during the 2023-24 NBA regular season, and the 2023 NFL regular season saw a 60% increase in both the total number of live wagers and the total handle.
How Does This Impact Bettors?
Per the DraftKings press release, this acquisition will “unlock a faster and more frictionless experience” for sports bettors. It should make in-play betting quicker and allow bettors to choose from a much wider range of options while games are taking place.
Corey Gottlieb, DraftKings’ chief product officer, said via the release, “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.”
In-play wagering is a massive, growing component of online sports gambling. If this acquisition is as transformative as DraftKings believe it will be, this could be a gamechanger for bettors.
DraftKings’ rivals will be forced to up their game now, too. The competition should work in the favour of bettors as FanDuel, Bet365, Caesars, and BetMGM push to keep pace with DraftKings in the coming months. Keep your eyes peeled for new live betting features from the top US sportsbooks.
