DraftKings Thursday announced the completion of the $750 million acquisition of lottery app Jackpocket. A proposed deal between DraftKings and the digital lottery app was announced in February 2024.
“Today we are announcing the completion of our acquisition of Jackpocket, and the commencement of our value creation plan,” said DraftKings CEO and Co-founder Jason Robins in a statement. “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. We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem.”
According to a DraftKings’ release, Jackpocket is “renowned for its innovative digital lottery services, robust technology infrastructure, and strong brand presence. This acquisition empowers DraftKings to tap into the expansive U.S. lottery vertical, while expanding its position in sportsbook and iGaming by enhancing customer lifetime value and bolstering customer acquisition capabilities.”
“The completion of the acquisition represents an exciting new chapter for Jackpocket and DraftKings alike,” said Jackpocket CEO Peter Sullivan. “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.”
When the proposed acquisition was announced, Wall Street analysts generally gave it positive feedback. Deutsche Bank analyst Carlo Santarelli wrote, “While the purchase price is not insignificant, given the current equity valuation of DKNG, we believe the deal is prudent.”
But Truist Securities analyst Barry Jonas wrote that it was unclear “if/to what extent and investment phase will be needed” prior to 2026. Jonas projected five percent year-over-year revenue growth for Jackpocket through 2028.
