DraftKings finalises acquisition of Jackpocket

Lea Hogg May 24, 2024

SiGMA news

DraftKings finalises acquisition of Jackpocket

DraftKings, a renowned operator in the digital sports entertainment and gaming industry, has recently completed its acquisition of Jackpocket, a lottery courier service, for a whopping $750 million. This strategic move was first announced in February 2024, and the payment was made through a combination of cash and DraftKings class A common stocks issued to Jackpocket shareholders.

Leap towards expansion and customer acquisition

The acquisition is expected to drive significant growth for DraftKings, with an estimated increase of up to $340 million in incremental revenue and up to $100 million in incremental adjusted EBITDA by the fiscal year 2026. Further growth is anticipated by the end of 2028.

The integration of Jackpocket into DraftKings’ operations will allow the company to tap into the U.S. lottery vertical, thereby bolstering its customer acquisition capabilities. DraftKings CEO, Jason Robins, emphasized the value of acquiring Jackpocket’s customer database and the potential for cross-selling. He cited research indicating that online lottery players are more likely to engage in other verticals such as sports betting and iGaming.

Jackpocket, currently available in 16 U.S. states, Washington D.C., and Puerto Rico, also has an online casino presence, with its first iteration recently launched in New Jersey. Jackpocket CEO, Peter Sullivan, expressed excitement about the new chapter in the companies’ journey, stating that the acquisition will allow Jackpocket to “drive growth and innovation” in the digital lottery vertical.

DraftKings’ acquisition spree as Sports IQ joins the roster

In addition to Jackpocket, DraftKings has also recently acquired Sports IQ, an oddsmaker and player prop provider. Sports IQ Analytics CEO, Omer Dor, confirmed the acquisition and expressed his team’s excitement to join DraftKings. This acquisition further demonstrates DraftKings’ ambition to expand and diversify its offerings in the digital sports entertainment and gaming industry.

These strategic acquisitions by DraftKings signify a major shift in the digital lottery and gaming landscape, positioning the company for significant growth and expansion in the coming years.