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DraftKings Moving in on Simplebet Acquisition

Davis Isabela

Updated on May 27, 2024 at 10:29 AM EDT • Read time: 1 minute and 56 seconds. Find more on Twitter and Google News.

The DraftKings Toyota is seen during the DraftKings First Bet in North Carolina at NASCAR Hall of Fame on March 11, 2024. Photo by Jared C. Tilton/Getty Images via AFP.

DraftKings is solidifying its position as a leading global sports betting provider with the potential acquisition of Simplebet, a provider of top microbetting platforms for various sports markets including MLB, NFL, NBA, college basketball, and football. This move would enhance DraftKings’ already impressive portfolio and further establish it as one of the top sports betting sites available.

Simplebet, in collaboration with Caesars Entertainment, introduced a groundbreaking NHL in-play microbetting platform in March. Additionally, Simplebet has formed strategic partnerships with leading U.S. sports betting platforms like bet365 and Hard Rock Bet.

According to the Earnings+More newsletter, DraftKings is nearing a deal to acquire the company for a price ranging from $120 to $170 million. This amount falls short of Simplebet’s $210 million valuation from its 2021 Series C funding round, where it raised $28.6 million.

What will DraftKings get?

DraftKings currently holds a 15% stake in Simplebet following a partnership agreement in 2021 that integrated Simplebet’s microbetting platform across DraftKings’ network. It is now speculated that DraftKings is in talks to acquire the remaining shares of the company.

Simplebet’s platform has experienced significant growth, with New York-based Simplebet reporting a doubling of wagering volume and overall handle since the beginning of the current MLB season. In just over a month, from April to mid-May, the company processed over 7 million bets.

Simplebet’s handle has increased by 120% over the past month-and-a-half, following the overall doubling of betting activity. Additionally, the number of unique users in Simplebet jurisdictions has spiked by 115% during this time.

DraftKings is capitalizing on the growing interest in live betting and micro markets by expanding its same-game parlay and Progressive Parlay offerings through a potential Simplebet acquisition. New users can explore DraftKings’ extensive offerings with our exclusive promo code.

DraftKings on a binge

Since the beginning of 2024, DraftKings has been rapidly expanding its presence in the legal gambling industry, narrowing the gap with FanDuel through a series of aggressive acquisitions. Based in Boston, the operator has been on a blitz to grow its market share.

The company’s strategies appear to be yielding positive results as evidenced by DraftKings’ most recent quarterly report, which reveals a revenue growth of over 50% compared to the previous year, totaling $1.2 billion in revenues for the first quarter.

DraftKings recently purchased Jackpocket, a digital service that offers access to state and national lottery games through its app. The $750 million deal will give DraftKings users an added benefit and provide the company with a new way to acquire customers.

Sports IQ, a company renowned for utilizing artificial intelligence to develop exclusive odds for the U.S. legal sports betting sector, recently joined DraftKings’ portfolio. The potential partnership between Sports IQ and Simplebet holds promise as the company pivots towards emphasizing in-game betting and microbetting markets.

Written By:
Davis Isabela
Davis Isabela is the Editor-in-Chief of Underscoreg Review. He has been a writer, reporter and editor for more than 20 years, and his work has appeared in more than 200 publications across North America. His first book, “100 Greatest Canadian Sports Moments”, was a hardcover best-seller in Canada in 2008. He has written more than 50 sportsbook reviews and dozens of other sportsbook-related content articles. James has also been quoted as a sports betting expert in USA Today and Sports Illustrated.