DraftKings has fired a significant salvo in its U.S. sports betting battle with FanDuel and others.
The sports betting industry leader announced Wednesday it has reached an agreement to acquire microbetting technology company Simplebet, Inc. In the release, DraftKings confirmed that the company intends to incorporate Simplebet's proprietary live betting offering into its existing technology platform, enabling the Boston-based sports betting operator to offer a superior live betting experience.
NEW: DraftKings has acquired Simplebet, one of the major microbetting platforms, the two sides announced today; the deal will integrate Simplebet's in-house proprietary tech into the $DKNG sportsbook; this will give DK new, exclusive abilities to offer props, live bets and SGPs
— Ryan Butler (@ButlerBets) August 28, 2024
“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,” Corey Gottlieb, DraftKings' chief product officer, said in the statement. “And while we continue to elevate our product offering in this space, we are also committed to building technology that supports our robust consumer protection standards.”
Simplebet's impressive list of clients
Founded in 2018, Simplebet has emerged as one of the leading microbetting market providers in the world, with the New York-based company building a clientele list that included DraftKings, bet365, and Caesars, among others.
“Joining forces with our long-term collaborators at DraftKings will further the Simplebet mission to make every sports moment matter,” Chris Bevilacqua, Simplebet co-founder and CEO, said in the statement. “This transformative acquisition, upon completion, will marry our best-in-class AI and machine learning technology with the DraftKings product offering, enhancing the customer experience for a new era of real-time, in-play gaming.”
Microbetting – used to describe live markets where bettors can wager on individual events like the speed of a pitch or result of a football play – has been a popular topic in sports betting circles over the past 18 months, in particular. According to the Associated Press, Andrew Bimson, the North American president and chief operating officer for data company Sportradar AG, said microbetting is the fastest-growing segment of in-play betting and estimated its handle could reach $20 billion by 2027.
The next big thing?
With every major operator looking for any edge it can get, DraftKings' acquisition is a major coup at a time when product differentiation is more critical than ever.
Simplebet announced in late June that a whopping $325 million had been wagered on NBA microbetting markets for the 2023-24 season alone. Close to 13 million bets were placed on games across the campaign, with an estimated growth of 75% for each category compared to the 2022-23 NBA season.
The NFL shattered records as well, with Simplebet increasing its handle and ticket count by double-digits during Super Bowl 58 between the Kansas City Chiefs and San Francisco 49ers. During the 2023 NFL regular season, the total number of bets placed in microbetting markets rose 60% from 2022, along with a 60% increase in total betting handle.
With DraftKings' acquisition coming on the eve of the 2024-25 NFL regular-season kickoff, don't be surprised to see the site enjoy a boost in handle – particularly at the expense of competitors that can no longer use Simplebet for its live markets.
