DraftKings is upping its artificial intelligence and micro-betting capabilities with the acquisition of its one-time rival Simplebet. With this acquisition, DraftKings will be in position to seriously increase the volume and quality of in-play markets it offers players right as the critical US football season gears up for serious play.
Simplebet has made a name on the technological side of the sports betting business with its machine learning model that focuses exclusively on live betting. This system uses algorithms to dynamically generate in-play bets without human assistance. It’s a key piece of technology that will give DraftKings a major edge in one of the fastest growing sectors of the booming US sports betting market.
Details of the deal have not been made public but some industry observers have estimated it to be worth between $120-$150 million. While this most recent deal is for the acquisition of the entire Simplebet operation, it should be noted that DraftKings already owned 15 percent of Simplebet that was the result of a partnership deal inked back in 2021.
Corey Gottlieb, DraftKings Chief Product Officer described the advantages of the Simplebet acquisition in a recent press release saying,“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 sport. 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.”
Both Simplebet and DraftKings’ respective boards of directors have approved the deal, which is now awaiting regulatory approval to be finalized.