Draftkings set to acquire lottery app Jackpocket for $750 million
Draftkings set to acquire lottery app Jackpocket for $750 million
DraftKings, the American daily fantasy sports betting app that recently collaborated with LeBron James and themed Superbowl bets around Taylor Swift, is set to acquire the daily lottery app Jackpocket for $ 750 million. The deal is expected to generate $ 340 million in additional revenue annually.
After announcing in its Q4 earnings call that it had cash assets of $ 1.27 billion, DraftKings will be paying around 55% of the purchase price of Jackpocket in cash, with no capital raise required.
DraftKings is keen on expanding into the US lottery segment, and Jackpocket is an extremely lucrative opportunity for them to do so. It is currently available in 18 US jurisdictions and allows users to obtain lottery tickets from multiple states, maximizing their chances to win. Jackpockets claim that its app is nine times more popular than the competition based on app downloads.
Jackpocket and DraftKings CEOs speak about the purchase
“We are very excited to enter the rapidly growing U.S. digital lottery vertical with our acquisition of Jackpocket,” said Jason Robins, Co-founder and CEO of DraftKings in the announcement. “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.”
The CEO of Jackpocket, Peter Sullivan, also spoke in the statement. “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.”
Featured image credit: DraftKings
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