May 28, 2024 3 min read

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DraftKings to Venture into Micro-Betting as Simplebet Acquisition Buzz Grows

The appeal of Simplebet lies in its micro-betting technology, which has the potential to enhance DraftKings' current same-game parlay offerings

It appears that DraftKings, a major player in sports betting and online gaming, may be broadening its horizons with rumors circulating about an imminent purchase of Simplebet, a provider renowned for its micro-betting services. People close to the situation allege negotiations are ongoing with the price said to be ranging anywhere from $120 million to $170 million, reported Earnings+More in its latest newsletter.

DraftKings to Bolster Industry Standing with Simplebet Micro-Betting Tech

The attraction towards Simplebet stems from its micro-betting technology which could complement existing same-game parlay features offered by DraftKings. This move follows closely behind recent acquisitions made by DraftKings of Sports IQ Analytics and Jackpocket, further cementing the company’s status within the industry.

No strangers to Simplebet, DraftKings entered into a partnership with it last year that led to a 15% stake acquisition and the introduction of real money micro-betting on DraftKings Sportsbook, thus making DraftKings responsible for a significant chunk of Simplebets’ turnover. 

The financial details involved in this transaction could prove tricky given Simplebets’ prior valuation at $210 million following a Series C funding round. However, according to the allegations, the sale price might come in below that figure.

Recent performance indicators released by Simplebet highlight their potential worth especially after they recorded double betting volume and total handle since the start of the MLB season showing increased user engagement.

Simplebet Acquisition Will Give DraftKings Competitive Edge

It seems like DraftKings’ strategy is now focused on meeting demand for live betting and micro markets. This can be seen as part of its effort to integrate more in-depth features into the platform so as to provide customers with richer betting experiences across different sporting leagues worldwide known for offering such options.

The acquisition is consistent with DraftKings’ broader objective of increasing its online gaming portfolio. The company has remained focused on taking control over as much of the market as possible and does everything strategically so as not just to keep up but to stay ahead of its competitors.

In connection with the potential acquisition, many experts speculate about the types of interactions that could occur between Simplebet’s micro-betting system and Sports IQ’s player prop abilities, thus adding more value to DraftKings’s sports betting services.

DraftKings are already positioned for growth and expansion within sports betting globally, however, if the Simplebet acquisition is finalized it is going to give it a competitive edge and become another significant step toward DraftKing’s ultimate goal of becoming an unbeatable sports betting giant.

Author

Silvia has dabbled in all sorts of writing – from content writing for social media to movie scripts. She has a Bachelor's in Screenwriting and experience in marketing and producing documentary films. With her background as a customer support agent within the gambling industry, she brings valuable insight to the Gambling News writers’ team.

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