The profitability angle? DraftKings to acquire Simplebet to enhance in-play betting capabilities.

DraftKings has announced its agreement to acquire Simplebet, a company specializing in in-play micro market betting content and pricing. The acquisition, which has received approval from the Boards of both companies, is now pending regulatory approval and other customary closing conditions.

This deal will see Simplebet’s machine-learning models integrated into DraftKings’ platform, aiming to enhance the speed and accuracy of in-play betting options. The integration is expected to allow for more precise and dynamic wagering during live sports events, thus improving the overall quality and efficiency of DraftKings’ betting services.

Corey Gottlieb, DraftKings’ Chief Product Officer, commented on the acquisition: “Live betting is a significant growth area for online sports betting, and this proposed acquisition would enable DraftKings to harness Simplebet’s proprietary technology to deliver an in-play wagering experience that keeps pace with the speed of sports.”

Founded in 2018, Simplebet focuses on developing technology for micro market pricing across sports like the NFL, MLB, NBA, and NHL. The company employs machine learning and automation to create more opportunities for bettors to place wagers on specific in-game moments, such as the next pitch or the next point.

This acquisition comes at a strategic time for DraftKings, which is actively working to expand its market presence. Despite facing recent hurdles, including a fine related to financial reporting errors in New Jersey, DraftKings reported a 53% increase in revenue for the first quarter of 2024.

Looking back to November 2021, it was predicted that Simplebet would become a major name in the industry, particularly with its focus on micro-betting technology. The company’s ability to offer numerous in-play betting opportunities, combined with significant partnerships and investments, positioned it as a key player in the evolving North American sports betting market. The acquisition by DraftKings only solidifies Simplebet’s growing influence in the industry.