DraftKings Nears Acquisition of Micro-Betting Provider Simplebet
DraftKings is reportedly close to finalizing a deal to acquire Simplebet, a micro-betting technology provider, in a transaction valued between $120 million and $170 million.
Existing Partnership and Stake
DraftKings already holds a 15% stake in Simplebet, secured through a partnership established in 2021. The collaboration introduced real money micro-betting to the DraftKings Sportsbook platform.
Simplebet also partners with other major operators such as Caesars, Bet365, and Hard Rock Bet.
The deal’s financial aspects are complex due to the expected sale price being below Simplebet’s valuation in 2021. At that time, Simplebet achieved a valuation of $210 million following a $28.6 million Series C funding round.
Simplebet’s Recent Performance
Simplebet has reported growth since the start of the current MLB season. From the beginning of April to mid-May, the company processed over seven million bets, more than double the number from the same period last year.
Additionally, the company’s handle increased by over 120% year-over-year, driven by a 115% rise in unique users. This growth is attributed to a rising demand for in-play betting and micro markets.
If completed, the acquisition will enable DraftKings to further integrate and expand its micro-betting offerings, leveraging Simplebet’s technology to enhance its live betting experience.
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