Simplebet reaches deal to be acquired by DraftKings
DraftKings is in the midst of another major acquisition.
The sports betting and DFS giant announced on Thursday an agreement to acquire micro-betting specialist Simplebet. The pending transaction, which is subject to regulatory approvals, has been approved by both Boards of Directors at DraftKings and Simplebet.
“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,” said DraftKings Chief Product Officer Corey Gottlieb. “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.”
DraftKings and Simplebet were first rumored to be close to a merger in May 2024 when Earnings+More reported a deal that could be worth between $120 million and $170 million. As of Aug. 29, DraftKings and Simplebet have yet to disclose the value of its active deal.
The two companies had already established a relationship before the merger with DraftKings holding a 15% stake in Simplebet through a partnership struck in 2021. The deal allowed Simplebet to provide its real money micro-betting product to DraftKings Sportsbook.
Simplebet’s technology provides DraftKings with a unique opportunity to scale operations.
During the first half of the MLB season, Simplebet reported a total betting handle of more than $630 million. The results were a 100% increase compared to the same period in 2023.
Simplebet accepted nearly 13 million from its portfolio of operator partners during the first half of the MLB season. That represented a 130% uptick compared to 2023’s first half.
Simplebet’s partners included bet365, DraftKings, Caesars, ESPN Bet, and Hard Rock.
Earlier this year, the Boston-based company acquired lottery courier Jackpocket in a deal valued at $750 million. DraftKings agreed to pay the total consideration of the transaction with cash and Class A common stocks that will be issued to Jackpocket shareholders.
DraftKings expects to generate up to $340 million in incremental revenue from the deal.
