DraftKings agrees to buy in-play betting company Simplebet
The acquisition will be DraftKings’ second major purchase this year, after it completed the purchase of digital lottery company Jackpocket in May. DraftKings earlier this year also acquired SportsIQ Analytics and sold VSiN back to its original owners.
DraftKings, founded in 2012 in Boston, is the second-biggest US sports betting company by market share.
Details of the deal were not released and are pending regulatory approval. The boards of directors for both companies have approved the acquisition, according to a DraftKings press release.
The Simplebet deal would allow DraftKings to integrate Simplebet’s machine learning models into its platform and offer customers “highly accurate betting opportunities during every moment of a game”. By adding Simplebet’s technology, according to the press release, DraftKings would be able to offer more and faster wagering options. It would also reduce customer friction.
“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,” DraftKings’ chief product officer Corey Gottlieb said via press release. “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 would have more technology in-house
The deal has been in the works for some time. In June, GGB News wrote that Simplebet would provide DraftKings with “cutting-edge technologies such as artificial intelligence to offer outcomes on quick bets on individual prop plays. Companies that bolster their artificial intelligence arsenals will have an advantage going forward.”
Simplebet, founded in 2018, provides micromarket pricing for the NFL, MLB, NBA, NHL and NCAA basketball and football. Through the deal, DraftKings would bring another part of its technology in-house, rather than relying on a third-party provider. Wagering platforms in general prefer to control as much of their technology as possible so they can tackle technical issues more quickly and efficiently.
Simplebet’s technology uses machine learning to study historic situations, such as next-pitch data in baseball, according to GGB. The company says it can process a transaction in 250 milliseconds. Offering more and more specific wagers throughout a game can keep consumers engaged for longer, even in non-competitive games.
“Joining forces with our long-term collaborators at DraftKings will further the Simplebet mission to make every sports moment matter,” Chris Bevilacqua, Simplebet co-founder and CEO said in the press release. “This transformative acquisition, upon completion, will marry our best-in-class AI and machine learning technology with the DraftKings product offering, enhancing the customer experience for a new era of real-time, in-play gaming.”
Bevilacqua has a long history of investing and starting companies. In 2006, he sold CSTV, which he founded, to CBS Sports. He has also invested in multiple media, sports and tech companies, including StubHub, The PostGame and Unscripted.