DraftKings Moving in on Simplebet Acquisition

DraftKings is taking another step toward cementing itself as a top dog among global sports betting providers with a rumored acquisition of Simplebet; Simplebet provides leading microbetting platforms for markets such as MLB, NFL, the NBA, college hoops, and football action. The move would add an extra layer to a DraftKings portfolio that has already cemented itself as one of our best sports betting sites.

In March, Simplebet, in partnership with Caesars Sportsbook, launched a first-of-its-kind NHL in-play microbetting. Simplebet also has key partnership agreements with such industry U.S. sports betting sites as bet365 and Hard Rock Bet.

The Earnings+More newsletter reported that a deal is close and that DraftKings will acquire the company for between $120 and $170 million. That figure is well below the $210 million evaluation that Simplebet received during a 2021 Series C funding round in which the company raised $28.6 million.

What will DraftKings get?

DraftKings already owns 15% of Simplebet from a 2021 partnership deal in which Simplebet’s microbetting platform was brought to the entire network of DraftKings Sportsbooks. The rumored deal will see DraftKings acquire the rest of the company.

Simplet’s platform has continued its impressive growth. Last week, New York-based Simplebet reported having seen its wagering volume and overall handle double since the start of the current MLB season. From the start of April to mid-May, the company accepted more than 7 million bets.

Handle has followed the overall doubling of betting activity for Simplebet. Its handle for the month-and-a-half period jumped 120% and unique users in Simplebet jurisdictions spiked 115% over that time.

DraftKings’ strategy here is to take advantage of the increasing demand for in-play betting opportunities and the popularity of micro markets. With a possible Simplebet acquisition, watch for DraftKings to increase its same-game parlay markets and Progressive Parlay markets. For new users who want to see what the behemoth already have to offer, you can use our DraftKings promo code.

DraftKings on a binge

DraftKings has been on an expansion blitz since the start of 2024. The Boston-based operator has been closing the gap on FanDuel through aggressive acquisitions across the legal gambling spectrum.

The company’s moves seem to be paying off. DraftKings' latest quarterly report shows a more than 50% increase in revenues year over year, with $1.2 billion in revenues for the first quarter.

Late last week, DraftKings acquired Jackpocket, a digital service provider that makes it easy to access and play state and national lottery games from its proprietary app. In the reported $750 million deal, DraftKings will provide its users with just another perk for being a DraftKings client and allow the company another customer acquisition stream going forward.

Sports IQ, a company known for using artificial intelligence to create proprietary odds for the U.S. legal sports betting industry, has also entered DraftKings' portfolio in the last couple of weeks. Sports IQ and Simplebet could be a good marriage going forward as the company's focus shifts to in-game betting and microbetting markets.