DraftKings announced in February 2024 that it would acquire Jackpocket, a leading lottery app, with an expectation to generate up to $340 million in additional annual revenue.
The focus is now on integrating Jackpocket into DraftKings’ operations to leverage synergies for sustained growth.
By entering the expansive US lottery market, DraftKings aims to enhance customer lifetime value and improve acquisition capabilities.
Jackpocket was the most-downloaded digital lottery app in the US in 2023.
Jason Robins, CEO and co-founder of DraftKings, stated, “Today we are announcing the completion of our acquisition of Jackpocket and the commencement of our value creation plan.
We are well-prepared to quickly launch cross-sell programmes, further improve customer acquisition efficiency and continue to innovate and differentiate with our overall product portfolio for our customers.”
Ed Birkin, senior analyst at H2 Gambling Capital, highlighted the benefits of the acquisition, noting it could provide diversification, significant market growth potential, and a new customer acquisition channel.
Jackpocket offers customers a way to order official lottery tickets in multiple states and is available in 18 US jurisdictions, including New York, Texas, and Ohio.
The New York-based company claims its app was downloaded nine times more than its closest competitor in fiscal year 2023. Jackpocket CEO Peter Sullivan said, “The completion of the acquisition represents an exciting new chapter.
Together, we are confident that we will be even more capable of helping lotteries fulfil 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.”
DraftKings’ acquisition announcement coincided with an upward revision of its 2024 financial forecast.
Following an outstanding start to 2024, DraftKings raised its revenue forecast to between $4.80 billion and $5.00 billion, up from the initial range of $4.65 billion to $4.90 billion, representing a year-on-year growth of 31.0% to 36.0%.
Adjusted EBITDA is now forecasted at between $460 million and $540 million.
After launching in North Carolina in March, DraftKings is now live with mobile sports betting in 25 states, covering approximately 49.0% of the US population.