DraftKings is set to merge user accounts with Jackpocket, the lottery app it acquired last year. This consolidation aims to streamline user experience across both platforms.
In a message to users, DraftKings wrote that “Jackpocket is part of the DraftKings family. In a few weeks, we’ll be merging your Jackpocket and DraftKings accounts so that you have one login across your Jackpocket and DraftKings apps.
The company also confirmed that if users have a deposit limit on either account, the more restrictive limit will be applied.
The user-directed message continued, “If you have deposit limits set on your Jackpocket account, those limits will also apply to your DraftKings account once merged. Your new deposit limit will be whichever limit (Jackpocket or DraftKings) is more restrictive.”
Jackpocket has a database of 6 million customers, with 1.8 million active users and 700,000 unique users per month.
DraftKings expansion into lottery gaming
DraftKings acquired US lottery app Jackpocket last year for $750 million, marking its ever-expanding presence in online gambling. Jackpocket was the first third-party licensed lottery app in the country and has maintained its role as the market leader. In 2023 it was downloaded nine times more than any competitor, and is available in 18 states.
At the time of the acquisition, a company statement read, “DraftKings believes the Proposed Transaction will enable the Company to safely and responsibly expand the lottery category, generating more revenue for states to fund important programs.”
Lottery couriers such as Jackpocket have faced opposition from some states. Texas recently banned third-party lottery sales following a scandal alleging a crime syndicate was using the services to rig results. DraftKings withdrew Jackpocket from the state following the ban, and was forced to do the same in New Mexico after they banned lottery couriers.
Connecticut has also been moving forward with a bill that would restrict third-party lottery ticket sales, although Jackpocket does not operate in the state.
Despite some opposition, business is growing for the company. In 2024, Jackpocket’s revenue grew by 70%, significantly outpacing the industry average. This growth was a large contributor to DraftKings’ increase in revenue in Q1 this year. The company reported last week that revenue increased by 20% from the first quarter of 2024.
Monthly unique payers (MUPs) were up to 4.3 million, a 28% increase from last year. Jackpocket accounts made up 17% of this increase, but this also led to a decrease in the value of MUPs. The average revenue per MUP declined 5% to $108. If Jackpocket accounts are excluded from this figure, the average revenue per MUP increased 7%, indicating that lottery players are less valuable than sports bettors or casino players.
Future plans for DraftKings
As well as acquiring Jackpocket last year, DraftKings completed the acquisition of Simplebet in December. Simplebet specializes in automated, in-game wager pricing, enhancing DraftKings’ micro-betting capabilities.
In their Q1 earnings call last week, company CEO Jason Robins indicated DraftKings are also monitoring prediction markets as a potential avenue for future expansion. In addition, the company continues to push for increased legalization of sports betting across the US. In particular, the sportsbook has spent large sums to support lobbying efforts in Texas and California.
The acquisition of Jackpocket had given DraftKings an avenue into Texas, which will make the state’s ban on lottery couriers all the more frustrating. But, following a legal challenge to the ban by lottery courier, Lotto.com, a judge in Texas put the ban on hold for now. There will be a court hearing later this month to determine the future status of third-party lottery sales in the state.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
