DraftKings to acquire Jackpocket for $750m, expanding into digital lottery market
The acquisition, subject to regulatory approval and customary closing conditions, is expected to be finalised by the second half of 2024.
DraftKings has announced its intention to acquire Jackpocket, a digital lottery app in the US, for an estimated $750m.
Through this acquisition, DraftKings aims to enter the US lottery market while increasing its position in Sportsbook and iGaming by capitalising on Jackpocket’s customer acquisition engine and cross-selling capabilities.
DraftKings Co-Founder and CEO Jason Robins said: “We are very excited to enter the rapidly growing US 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.”
Under the terms of the merger agreement, Jackpocket shareholders will receive approximately $412.5m in cash and approximately $337.5m in DraftKings’ Class A common stock, subject to adjustments and a collar mechanism based on DraftKings’ stock price.
Financially, DraftKings forecasts substantial incremental revenue and Adjusted EBITDA from the acquisition, with projections ranging from $260m to $340m in revenue and $60m to $100m in Adjusted EBITDA for fiscal year 2026, assuming no additional OSB and iGaming legalisation in the US.
Both DraftKings and Jackpocket hold memberships in the National Council on Problem Gambling. They provide tools and resources to promote responsible gaming behaviour.
This acquisition follows DraftKings’ collaboration with the Oregon Lottery this February to offer Super Bowl bets, such as those inspired by Taylor Swift songs.
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