Betting operator DraftKings has announced it has agreed to purchase the in-play sports gambling firm Simplebet for an undisclosed sum. This would be the second major acquisition this year after it bought the digital lottery company Jackpocket in May.
Details of the deal still need to be released and are pending regulatory approval. According to a public statement from DraftKings, the merger and proposed transaction have already been approved by both companies’ boards of directors.
The Boston-based gambling firm hopes Simplebet’s “proprietary machine-learning models” can support its own technology to create “highly accurate betting opportunities during every moment of a game.” DraftKings also states that it would 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,” said DraftKings chief product officer, Corey Gottlieb.
“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.”
Is DraftKings expanding its AI capabilities?
The deal could help DraftKings’ AI offerings and venture into the field. GGB News reports that Simplebet managed more than seven million bets since the beginning of April. Its handle rose 120 per cent year-over-year.
“Joining forces with our long-term collaborators at DraftKings will further the Simplebet mission to make every sports moment matter,” said Chris Bevilacqua, Simplebet co-founder and CEO.
“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.”
In July 2023, Paul Liberman, DraftKings global product and technology president, told Innolead: “We have been using AI technology for quite some time at DraftKings…
“[Even] generating or automating some simple procedures that previously would have taken a developer a day or two to write. We can leverage AI to make that process substantially faster.”
ReadWrite has reached out to DraftKings for comment.
Featured image: Ideogram
