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DraftKings will acquire AI-powered odds provider Sports IQ Analytics for an unknown amount, the company’s CEO Omer Dor announced on LinkedIn.

The purchase of the trading tools provider will see the US sports betting giant boost its pricing capabilities.

It comes following DraftKings CEO Jason Robins’ recent commitment to be highly disciplined on M&A until it has digested its acquisition of lottery courier Jackpocket.

Dor said on LinkedIn: “I’m excited for this next chapter in the Sports IQ Analytics journey.

“In DraftKings Inc. we join a team whose desire for winning and being the best matches our own. Thank you Jason Robins, Paul Liberman and the entire team for welcoming us onboard.”

Eric Levy from Osler, Hoskin & Harcourt LLP, and Robin Chhabra of Tekkorp Capital helped facilitate the transaction, according to the post.

Sports IQ was founded by Omer Dor, Matthew Belzberg, Jose Alfaro and Andrew Schwartz in 2018.

The odds provider raised $7m in a 2021 seed round, receiving backing from several leading sports executives.

These included Boston Red Sox CEO Sam Kennedy and Fenway Sports Group president Mike Gordon.

A DraftKings spokesperson said: “DraftKings can confirm it has acquired Sports IQ, a leading provider of advanced sports betting markets and trading tools to further optimise the dynamic betting markets already in place.”

US operator competition heats up

DraftKings’ decision to invest in its product comes as several of its competitors have announced renewed efforts to improve their platforms and technology.

MGM Resorts and Entain-owned rival BetMGM has said that 2024 will be an “investment year” as the operator aims to recover lost market share.

FanDuel’s platform remains the best on the market, according to product testing analysis released this month by Eilers & Krejcik Gaming.

The Flutter-owned operator retains an important lead in the efficacy of its Same Game Parlays (SGP) product.

Analysts at JMP Securities recently concluded that major US sports betting operators will be able to leverage improvements in SGP to improve their sportsbook margins.

Dor added: “Thank you to my co-founders Matthew Belzberg, Jose Alfaro and Andrew Schwartz for sharing this journey with me.

“For celebrating the good moments together, and sticking by each other through the more challenging times.

“I’m incredibly grateful to the phenomenal investors, advisors, partners, and clients who supported our vision and provided guidance and experience in Sports IQ’s journey at every turn.”

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