DraftKings is already Simplebet’s biggest client and owns 15% of the microbetting technology provider. Hard Rock and bet365 also own a chunk of the Simplebet pie, but recent reports suggest DraftKings is about to get a bigger piece.
Earnings + More is reporting that DraftKings is close to buying Simplebet, with multiple sources suggesting a deal is close. The alleged price range of $120 million to $170 million fall short of the $210 million valuation Simplebet achieved with its $28.6 million Series C funding round back in 2021 that was led by Jake Paul’s Anti Fund, among other VC firms.
Simplebet creates microbetting markets for MLB, NFL, NBA, college football, and college basketball. Caesars Sportsbook tapped the provider to start offering first-of-its-kind NHL in-play microbetting in March just in time for the NHL playoffs to start.
Making moves
These reports come just one day after DraftKings announced the finalization of a deal to acquire Jackpocket, a digital service that allows users to play state and national lottery games on an app. This acquisition was originally announced in February and touts a purchase price of $750 million.
Earlier this month, reports also surfaced that DraftKings was acquiring Sports IG Analytics, a Vancouver-based oddsmaker that uses advanced artificial intelligence and machine learning techniques to build proprietary odds for the U.S. sports betting industry. The terms of this deal were not disclosed, but Earnings + More also reported that the deal was priced at $50 million to $70 million.
Sources also suggested that Simplebet’s technology could complement Sports IQ’s, where DraftKings will try to marry the former’s microbetting architecture with the latter’s player props capabilities.
Getting bigger
DraftKings is already a global sports betting giant, competing with FanDuel to be the biggest sportsbook in the industry.
The Boston-based operator increased revenue by more than 50% year-over-year in the first quarter, clocking just under $1.2 billion in Q1.
The Simplebet acquisition could further augment DraftKings’ same-game parlay product, according to Earnings + More. “Progressive Parlays” were originally launched in December and allow users in Connecticut, Iowa, Illinois, Oregon, Tennessee, and Wyoming to create parlays that offer potential profits even if one or more legs lose.
