DraftKings is deepening the betting markets it can offer, including in-game, with the acquisition of Simplebet.
Terms for the deal were not announced Wednesday, though Jordan Bender of JMP Securities said the deal is worth up to $195 million with $70 million paid upfront. Both boards of directors have approved the transaction.
DraftKings is the latest US sports betting operator to buy a live betting technology provider and has been working with Simplebet since August 2021. The stock rose 1.5% in premarket trading to open at $34.86 after falling 2.8% Wednesday.
“The Proposed Transaction would improve the quality, breadth and speed of data throughout the DraftKings trading lifecycle, and would unlock a faster and more frictionless experience for the Company’s customers,” the company said in its press release.
DraftKings will move ‘at speed of sports’
The acquisition will give DraftKings customers a broader selection of live bets to make. AI pricing means those live betting markets can get up quicker as well.
“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,” Chief Product Officer Corey Gottlieb said.
Other sportsbooks, including bet365, Caesars and ESPN Bet, also have deals with Simplebet for their in-game betting content. It is not clear how those deals would be affected, if at all.
There is also a common thread between Simplebet and Betr, as Joey Levy is a founder of both. Levy announced last week, however, that Betr acquired a license for Huddle Tech technology.
AI pricing trending up
The percentage of handle from live betting in the US is still much lower than in the United Kingdom, though these AI deals should hasten that growth. Sportradar recently noted US live betting is around 35% to 40% of total handle while industry estimates place live betting share around 70% in the UK.
PointsBet made the first move, buying Banach Technology for $43 million back in March 2021. Entain then boosted its BetMGM joint venture with the acquisition of Angstrom in July 2023 in a deal potentially worth $265 million.
Having more markets to choose from also means more options for same-game parlays. In its 2024 H1 report, BetMGM noted a 40% increase in active customers placing a same-game parlay on an MLB game.
BetMGM also saw the weekly volume of same-game parlays double compared to last year.
