DraftKings Inc. has announced that it has agreed a deal to acquire lottery app, Jackpocket for $750 million.
According to the company announcement, around 55% of the consideration will be payable in cash while 45% will be payable in DraftKings Class A common stock.
Jackpocket is a provider of digital lottery services in the U.S. and the deal will enable DraftKings to access and grow into the U.S. lottery industry.
Jason Robins, Co-founder and CEO of DraftKings said of the deal:
“We are very excited to enter the rapidly growing U.S. digital lottery vertical with our acquisition of Jackpocket. This transaction will create significant value for DraftKings not only by giving our customers another differentiated product to enjoy but also by improving our overall marketing efficiency similar to how our daily fantasy sports database created an advantage for DraftKings in OSB and iGaming.”
Peter Sullivan, CEO of Jackpocket added:
“Together with DraftKings, we will be able to bring tremendous value to our customer base as we advance our mission to create a more convenient, fun, and responsible way to take part in the lottery. DraftKings’ broad footprint and exceptional mobile products present an opportunity to meaningfully expand the digital lottery vertical, and we could not be more excited to come together with DraftKings.”
DraftKings has stated that it expects the acquisition of Jackpocket to drive $260 million to $340 million in revenues during the fiscal year 2026. This is projected to grow to $350 million to $450 million of revenue in fiscal year 2028.
The deal which includes $412.5 million in cash and approximately $337.5 million in the Company’s Class A common stock is expected to close in the second half of 2024.
DraftKings Generates $1.2 Billion in Q4 2023
The latest financial report from DraftKings reveals that for the three months ended December 31, 2023, the company reported revenue of $1.2 billion, an increase of $376 million, or 44%, compared to $855 million during Q4 2022.
The increase was driven mainly by the acquisition of new customers and the expansion of the Company’s Sportsbook into new jurisdictions. Customer-friendly sport outcomes primarily in the final two weeks of November impacted DraftKings’ revenue and Adjusted EBITDA in the fourth quarter of 2023 by approximately $175 million and approximately ($126 million, respectively.
Q4 2023 Highlights
- Revenue for Q4 2023 – $1.2 billion
- Monthly Unique Payers (“MUPs”) increased to 3.5 million, up by 37%
- Average Revenue per MUP (“ARPMUP”) – $116, up by 6%
Following the launches in Maine and Vermont, DraftKings is live with mobile U.S. sports betting in 24 states.
DraftKings is also live with iGaming in 5 states.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.