DraftKings (NASDAQ: DKNG) has announced its acquisition of Simplebet Inc., a company specializing in micro-betting services, aiming to enhance its in-game betting offerings. The financial specifics of the deal were not disclosed, though earlier speculation suggested the purchase price could range from $120 million to $170 million. DraftKings and Simplebet have been partners since 2021 when Simplebet began supplying micro-betting services to DraftKings Sportsbook.

According to a statement from DraftKings, the acquisition will enable the integration of Simplebet’s advanced machine-learning models into DraftKings’ existing pricing and technology platform. This integration is expected to deliver highly accurate betting opportunities in real-time, improving data quality, speed, and overall customer experience.

Headquartered in Boston, DraftKings is already Simplebet’s largest client. Simplebet was valued at $210 million after a $28.6 million Series C funding round three years ago.

Strategic Value of Simplebet for DraftKings

Acquiring Simplebet could be a strategic move for DraftKings, as micro-betting is a rapidly growing segment of in-game or live betting—an area where operators are increasingly focusing to boost handle and revenue.

Unlike traditional live betting, which typically involves wagering on updated totals or spreads, micro-betting offers more granular betting options. Simplebet’s services allow operators like DraftKings to present bets on specific outcomes, such as the result of a coin toss in a football game or individual pitches in a baseball game. These quick, binary outcomes are appealing to bettors because they offer immediate results, enabling quick decision-making for subsequent bets.

In-game betting has long been popular in established markets like Australia and Europe and is quickly gaining traction in the U.S. The acquisition of Simplebet underscores the importance of technology in making live and micro-betting viable and attractive to users.

Background on Simplebet

Founded in 2018 and based in New York, Simplebet is a business-to-business provider of micro-betting markets for various sports, including college basketball and football, Major League Baseball (MLB), the NBA, NFL, and NHL.

In addition to DraftKings, Simplebet’s client list includes prominent names like Caesars Sportsbook, ESPN Bet, FanDuel, and Hard Rock Sportsbook. It remains to be seen whether these operators will continue their partnerships with Simplebet once it becomes part of DraftKings or if they will seek micro-betting services elsewhere.

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