DraftKings Acquires Simplebet After Shedding Other Assets

DraftKings is trying to regain its momentum after a tough summer. 

On Wednesday, the sports gambling giant agreed to acquire Simplebet, a company that specializes in live-event wagers. The deal is supposed to facilitate gambling for customers, and DraftKings said in a statement it will integrate Simplebet’s systems into its own. 

“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,” said Corey Gottlieb, DraftKings’ chief product officer. 

Simplebet was founded in 2018 and provides microbetting information on major U.S. sports leagues. The microbetting market is growing in popularity, and DraftKings hopes to improve speed and quality of in-game wagers.

The announcement comes amid a week in which the NFLPA sued DraftKings for breach of contract, alleging the company didn’t follow through on a $65 million deal. DraftKings closed down its NFT marketplace in July “due to recent legal developments.” The prior week, the company sold VSiN, a gambling content channel, back to Musburger Media after buying it for $70 million in 2021. DraftKings is also facing a class action lawsuit  in a Massachusetts court from NFT buyers alleging its NFT marketplace violated securities laws. The judge denied the company’s motion to dismiss the case. 

DraftKings also canceled a gambling surcharge in high-tax states after rival FanDuel said it didn’t plan to do so. FanDuel recently beat analysts’ expectations in its earnings call and has been riding high, while DraftKings sheds assets and combats lawsuits.