Betting News 
DraftKings is set to enhance its live betting capabilities with the acquisition of Simplebet, a leading live betting technology provider. The financial terms of the deal, announced on Wednesday, were not fully disclosed, but Jordan Bender of JMP Securities estimates the transaction could be worth up to $195 million, with $70 million paid upfront. Both companies’ boards of directors have already approved the deal.
Strategic Move to Deepen Live Betting Offerings
The acquisition marks DraftKings as the latest US sports betting operator to secure a live betting technology provider, further expanding its offerings in the highly competitive market. DraftKings has been collaborating with Simplebet since August 2021, and this acquisition will now allow the company to fully integrate Simplebet’s technology into its platform.
The acquisition also positively impacted DraftKings stock, which saw a 1.5% increase in premarket trading, opening at $34.86 after a 2.8% drop on Wednesday.
According to a statement from DraftKings, the acquisition is expected to “improve the quality, breadth, and speed of data throughout the DraftKings trading lifecycle, unlocking a faster and more frictionless experience for the company’s customers.”
Enhancing the Live Betting Experience
The deal will enable DraftKings to offer a more extensive selection of live bets, with AI-driven pricing allowing these markets to be made available faster. Corey Gottlieb, Chief Product Officer at DraftKings, emphasized the potential growth in live betting as a key area for online sports betting. He stated that the acquisition would empower DraftKings to leverage Simplebet’s proprietary technology to deliver an in-play wagering experience that “moves at the speed of sports.”
Other major sportsbooks, such as bet365, Caesars, and ESPN Bet, also have agreements with Simplebet for in-game betting content. However, it remains unclear how these deals will be impacted by the acquisition.
Interestingly, there’s a connection between Simplebet and Betr, as Joey Levy is a founder of both companies. Last week, Levy announced that Betr had acquired a license for Huddle Tech technology, showcasing his continued influence in the industry.
AI-Driven Live Betting on the Rise
The live betting market in the United States still trails behind the United Kingdom, where live betting accounts for around 70% of total handle, compared to 35% to 40% in the US, according to Sportradar. However, the integration of AI-driven technology through acquisitions like this one could accelerate growth in the US market.
The move to acquire Simplebet follows a trend among major operators to bolster their live betting offerings. In March 2021, PointsBet acquired Banach Technology for $43 million. More recently, in July 2023, Entain enhanced its BetMGM joint venture by acquiring Angstrom in a deal potentially valued at $265 million.
With the expansion of live betting markets, DraftKings is also likely to see growth in same-game parlays, a popular option among bettors. For instance, BetMGM reported a 40% increase in active customers placing same-game parlays on MLB games in the first half of 2024, with weekly volumes doubling compared to last year.
