DraftKings enters agreement to buy Simplebet

DraftKings has confirmed that it has entered into an agreement to buy out Simplebet Inc, a company that focuses on in-play micromarket content and pricing, and which has been rapidly gaining ground with younger generations of bettors.

DraftKings makes a play for Simplebet

As DraftKings seeks to further expand its reach and pull with a diverse demographic, the company has embarked on this ambitious move that the company hopes would lead it to securing a larger swathe of the bitterly contested market in North America, and the United States in particular.

In the meantime, the agreement and transaction are still subject to regulatory approvals and other customary closing conditions, DraftKings has said in a press statement.

Commenting on this move, DraftKings Chief Product Officer Corey Gottlieb has welcomed the chance to see the sports company grow its online betting business. Gottlieb was particularly pleased with the potential acquisition of Simplebet’s tech platform, allowing the company to build a stronger 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," he concluded.

The news was similarly welcomed by Simplebet CEO and co-founder Chris Bevilacqua who was similarly pleased with the opportunity to integrate his company’s product and tech platform deeper into one of the leading sports betting companies on the market.

"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 added.

Betting on the world’s leading micromarket B2B provider

As to Simplebet, the company has been one of the most successful innovators in the US betting landscape. It was founded in 2018 and started offering B2B micromarkets on a range of popular American sports, including the NFL, MLB, NBA, NCAAF, NHL, and NCAAB.

The company has quickly gained prominence owing to its laser-sharp algorithms that allowed it to feed partners with accurate and reliable information and further incentivize a new crowd of sports bettors interested in the action "right now." Indeed, interest in the United States has been mostly shifting away from pre-game wagers, with a sharp focus on in-play and micromarkets moving forward.

DraftKings too can land its own machine learning algorithms to help build strong synergies with Simplebet’s tech stack and elevate the two companies’ performance. DraftKings stock was down by 2.77% to $34.35 on Wednesday. The financial details of the deals were not disclosed.

DraftKings has also had a rather rough spell. The company had to pull the plans on a surcharge tax that backfired and turned into a marketing fiasco and it further announced that it would be shuttering its NFT marketplace, triggering a stern rebuke and further unpleasantries from the NFLPA, which is seeking $65m from the company.

Image credit: DraftKings