DraftKings Acquires Jackpocket for $750 Million

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In a $750 million deal, DraftKings announced its acquisition of Jackpocket, a lottery app in the US that’s been making headlines in the US online lottery space.

Continue reading below to learn more about the details of the acquisition, its implications for the gambling industry, and what it means for gamblers across the United States.

DraftKings Expands Its Empire

On February 15, 2024, DraftKings revealed its plans to acquire Jackpocket, which is expected to impact the U.S. lottery and online gambling sectors significantly.

draftkings sports

With a mix of cash and stock totaling approximately $750 million, the acquisition is set to drive substantial value for both companies and their customers.

Jason Robins, co-founder and CEO of DraftKings, expressed his excitement:

We are very excited to enter the rapidly growing U.S. digital lottery vertical with our acquisition of Jackpocket.”

He emphasized the transaction’s potential to create significant value by offering customers a differentiated product and enhancing marketing efficiency.

Peter Sullivan, CEO of Jackpocket, shared his enthusiasm for joining forces with DraftKings, highlighting the opportunity to expand the digital lottery and bring tremendous value to their customer base.

Furthermore, DraftKings projects the acquisition to bring in $260 million to $340 million of incremental revenue by fiscal year 2026, with adjusted EBITDA expected to hit $60 million to $100 million.

By 2028, DraftKings anticipates these figures will grow even further, showcasing the deal’s long-term financial benefits.

About Jackpocket

  Automatic Redemption for Winnings

For prizes under $600, Jackpocket automatically redeems winnings, depositing them directly into the user’s account, simplifying the collection process.

Founded in 2013, Jackpocket is a leading lottery app in the U.S., offering a convenient and secure platform for purchasing lottery tickets across 18 states, including New York, Texas, and Ohio.

The app allows users to buy tickets digitally, with physical tickets purchased on behalf of the user, scanned, and then accessible through the app.

Furthermore, Jackpocket’s commitment to responsible gambling is evident through its certification for responsible gaming by the National Council on Problem Gambling (NCPG). Also, the app provides tools to encourage responsible gaming behavior.

This acquisition strategically aims to enhance the user experience and broaden the reach of online gambling in the U.S. DraftKings’ acquisition of Jackpocket is a testament to its commitment to innovation and providing a diversified gambling experience that caters to sports bettors and lottery enthusiasts.

online-gamblingMoreover, for American gamblers, it means more options, more games, and more opportunities to engage in their favorite gambling activities safely and responsibly.

As DraftKings and Jackpocket prepare to merge their operations, the focus remains on creating a people-first gambling experience that prioritizes safety, enjoyment, and responsible play.

Finally, the deal, expected to close by the second half of 2024, is significant in the evolution of online gambling, promising to bring a wealth of benefits to gamblers nationwide.

 

The acquisition deal is worth approximately $750 million.

DraftKings announced the acquisition on February 15, 2024.

It’s expected to significantly impact the U.S. lottery and online gambling sectors by expanding options and creating more opportunities for gamblers.

DraftKings projects $260 million to $340 million of incremental revenue by 2026, with adjusted EBITDA expected to hit $60 million to $100 million.

Jackpocket is available in 18 states, including New York, Texas, and Ohio.

Jackpocket is certified for responsible gaming by the NCPG and provides tools to encourage responsible gaming behavior.

Users buy tickets digitally, then physical tickets are purchased on their behalf, scanned, and accessible through the app.

DraftKings aims to enter the digital lottery space, enhance user experience, and offer a diversified gambling experience.

Liga Tarasova has a history of quality assurance and leading teams in an outsourcing company. Currently, she is working remotely as an Editor in Chief for Onlinegamblers.com. She stands for fair and safe gambling for people in the USA. Not long ago, she lived in Malta, the global iGaming hub, and worked at an iGaming company offering cloud-based product and platform services to B2B partners. Liga’s passion is visual arts and interior design.

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