DraftKings strengthens market share with acquisition of Simplebet

DraftKings Inc. has announced its agreement to acquire Simplebet Inc., a company specialising in in-game betting technology. The acquisition indicates DraftKings’ commitment to enhancing its product offerings and strengthening its position in the rapidly evolving sports betting market. This deal is particularly significant as it highlights the growing importance of microbetting—wagers placed during live sporting events—a trend that is reshaping the landscape of sports wagering. It will no doubt grow Draft Kings’ market share significantly.

Importance of the acquisition

The acquisition of Simplebet by DraftKings is a strategic move aimed at expanding the company’s capabilities in the expanding market of in-game or microbetting. Microbetting allows users to place bets on specific outcomes within a game, such as the next play in an NFL game or the result of the next pitch in an MLB game. This form of betting has been gaining traction among bettors due to its immediacy and the dynamic nature of live sports, making the betting experience more interactive and engaging.

Simplebet, founded in 2018, has quickly established itself as a leader in this niche market by providing sophisticated pricing models and data-driven insights to operators. The company’s technology is already utilized by major sports leagues, including the NFL, MLB, and NBA, demonstrating its credibility and relevance in the industry. By integrating Simplebet’s technology into its own platform, DraftKings aims to offer a more comprehensive and seamless betting experience to its customers, potentially increasing user engagement and retention.

Financial and market implications

While the financial terms of the deal were not disclosed, the acquisition is expected to have significant implications for both companies and the broader sports betting industry. For DraftKings, this move could further solidify its market leadership by enhancing its product suite and differentiating it from competitors. The integration of Simplebet’s microbetting models could attract a broader customer base, particularly those interested in the immediacy and excitement of in-game betting.

Moreover, this acquisition could lead to increased revenue for DraftKings, as microbetting typically involves higher betting volumes due to the rapid and repetitive nature of the wagers. This could also lead to higher margins, as in-game betting is often more profitable compared to traditional pre-game wagers.

On the other hand, Simplebet stands to benefit from DraftKings’ extensive user base and marketing capabilities. The partnership will likely provide Simplebet with greater exposure and the resources needed to further refine its technology and expand its offerings. This could also accelerate the adoption of microbetting across the industry, as other operators may seek to develop or acquire similar capabilities to remain competitive.

DraftKings, headquartered in Boston, is one of the most prominent names in the sports betting industry, with a market capitalization of over $20 billion as of mid-2024. Simplebet, meanwhile, has positioned itself as a pioneer in microbetting technology, and its acquisition by DraftKings is seen as a validation of its innovative approach.

This deal is part of a broader trend of consolidation in the sports betting industry, as companies seek to acquire advanced technologies and platforms to stay competitive in a fast-growing market. With the increasing legalisation of sports betting across the United States and other markets, operators are under pressure to offer more sophisticated and engaging products to attract and retain customers.

SiGMA East Europe Summit powered by Soft2Bet, will take place in Budapest from 2-4 September 2024