The Company Building The Future Of US Sports Betting
Simplebet, a B2B technology company focused on in-game betting, raised an additional $15 million yesterday — but how does it impact the future of US sports betting?
|Joseph Pompliano||Mar 3||8|
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Simplebet, a software company looking to “power the future of fan engagement” through micro-betting, secured an additional $15 million of investment capital yesterday.
The B2B technology company has raised $50 million in total, with an impressive list of investors including the San Francisco Giants, Starbucks Chairman Howard Schultz, and Philadelphia 76ers co-owner David Blitzer.
Today, we’ll talk through what Simplebet is, how it works, and why it matters for the future of US sports betting.
Let’s get right into it.
First, let’s add some context.
Since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018, which allowed individual states to legalize and regulate sports betting how they see fit, the U.S. sports betting market has exploded. In total, about two dozen states have already legalized sports betting, representing slightly over 40% of the U.S. population (Source).
That’s impressive progress, except there is one part that typically goes unnoticed.
While industry experts estimate the total addressable market for the U.S. Sports Betting industry to eventually reach ~$50B+, most also agree that 70% or greater of that value will come from in-play betting.
This is where Simplebet comes in.
Simplebet is a B2B technology company leveraging data to build the future operating system of in-play betting and fan engagement for U.S. sports, starting with micro-betting.
Their mission is simple — to make every moment of every sporting event a betting opportunity.
Here are some examples:
Will the next pitch be a strike or ball?
Will the next play be a pass or run?
Will the NY Giants score points on this drive?
Will LeBron James make or miss his next free throw?
Realistically, the possibilities are almost endless.
Simplebet tested a free-to-play model of its product on FanDuel last year for the NFL season. The results were fantastic.
Over 8 million bets
More than 100,000 unique users
Furthermore, as their products are rolled out to additional operators and expanded into other sports, the ability to keep users on their app for 30 minutes or more during a game will be a superpower.
In the end, competition and opportunity breed creativity. Simplebet is just an example of the outcome. While every major sports betting operator in the country focuses its resources on state expansion and M&A, Simplebet has capitalized on its first-mover advantage in product innovation.
The combination of sports betting turning mainstream and the need for instant gratification in today’s society has me more bullish than ever on the opportunity for in-game betting.
It’s going to be fun to see how Simplebet uses additional capital to integrate new operators, increase fan engagement, and fundamentally change US sports betting infrastructure forever.
As always, have a great day, and we’ll talk tomorrow.
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I’ll be involved, but as always, do your own research :)
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