DraftKings Finalizes $750 Million Acquisition of Jackpocket

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DraftKings Jackpocket acquisition

DraftKings has completed its $750 million acquisition of Jackpocket, a prominent digital lottery app.

This acquisition, initially announced in February 2024, marks an important point in the U.S. gambling industry.

Continue reading below to learn more about how Jackpocket’s integration into DraftKings‘ operations will improve customer acquisition, growth, and the digital lottery market.

DraftKings’ Acquisition of Jackpocket

DraftKings announced its intention to acquire Jackpocket earlier this year.

They paid $750 million through cash and DraftKings Class A common stock issued to Jackpocket shareholders.

The deal officially closed on May 23, 2024. This year, it is one of the biggest transactions in the U.S. sports betting industry.

 

By 2026, the company projects incremental revenue growth between $260 million and $340 million.

Moreover, they forecast an increase in adjusted EBITDA by $60 million to $100 million.

Jason Robins, CEO and co-founder of DraftKings, emphasized the strategic importance of this acquisition.

Today, we are announcing the completion of our acquisition of Jackpocket and the commencement of our value creation plan,” Robins stated.

“We are well-prepared to quickly launch cross-sell programs, further improve customer acquisition efficiency, and continue to innovate and differentiate with our overall product portfolio for our customers.

DraftKings expects the acquisition to improve its financial performance greatly.

Integration of Jackpocket

Jackpocket lottery DraftKingsWith Jackpocket now being part of it, DraftKings will focus on integrating the digital lottery app into its broader operations.

The integration aims to improve customer acquisition capabilities by tapping into Jackpocket’s existing customer base and cross-selling opportunities.

Jackpocket, launched in the U.S. in 2019, operates as a lottery courier service in 16 states.

That includes Arkansas, Colorado, Minnesota, New Jersey, New York, Ohio, Texas, and Washington, D.C.

It also has an online casino presence, having launched its first operation in New Jersey.

The app’s success in these regions provides a strong foundation for further growth under DraftKings’ umbrella.

This acquisition solidifies DraftKings’ position in the digital lottery market and increases its overall market share in online gaming.

The strategic move is expected to create numerous opportunities for customer engagement and revenue generation.

In addition to the Jackpocket acquisition, DraftKings recently acquired Sports IQ Analytics, an AI-powered odds provider.

Moreover, it is committed to using technology and innovation to improve its product offerings and market reach.

 

DraftKings’ Commitment to Responsible Gaming

DraftKings and Jackpocket remain committed to promoting responsible gaming.

  Jackpocket CEO Peter Sullivan stated:

The completion of the acquisition represents an exciting new chapter for Jackpocket and DraftKings alike.

Together, we are confident that we will be even more capable of helping lotteries fulfill their mission of delivering revenue back to the beneficiaries they support.

DraftKings’ proven reach and cutting-edge mobile platforms will continue to allow us to drive growth and innovation in the digital lottery vertical.

Completing DraftKings’s $750 million acquisition of Jackpocket marks a transformative moment in the online gaming industry.

With ambitious growth, integration, and innovation plans, DraftKings will deliver increased value to its customers and shareholders.

As Jason Robins said, “We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem.”

For more updates on developments in the U.S. gambling industry, stay tuned to OnlineGamblers.com, your trusted source for safe and legal gambling news.

DraftKings has acquired Jackpocket, a digital lottery app, for $750 million.

DraftKings announced the acquisition in February 2024.

DraftKings paid $750 million in cash and DraftKings Class A common stock.

The deal officially closed on May 23, 2024.

DraftKings acquired Jackpocket to improve customer acquisition, drive growth, and innovate in the digital lottery market.

Jackpocket is a digital lottery app that operates as a lottery courier service.

Jackpocket operates in 16 states, including Arkansas, Colorado, Minnesota, New Jersey, New York, Ohio, Texas, and Washington, D.C.

Yes, Jackpocket launched its first online casino iteration in New Jersey.

DraftKings also acquired Sports IQ Analytics, an AI-powered odds provider.

The acquisition will improve customer acquisition, cross-sell opportunities, and solidify DraftKings’ position in the digital lottery market.

Gita Puikevica-Puikevska is a dedicated content creator based in Riga, Latvia. Her degree in technical translation and passion for music mirrors her creative approach to content writing. She is committed to keeping players informed with the latest gambling-related news and insights. Gita's commitment to promoting responsible gambling practices in the United States showcases her dedication to making a positive impact in the online gambling community.

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