May 30, 2024– Sportsbook and iGaming company DraftKings is capping the month of May with an acquisition of the Jackpocket Lottery app. The $750 million cash-and-stock acquisition leaves the company confident in tapping into the US lottery vertical in 2024.

According to a filing with the U.S. Securities and Exchange Commission, DraftKings issued more than 7.5 million shares of its Class A common stock (par value $0.0001 per share) on Wednesday as part of the procedure to complete the deal. The initiative to expand and increase its cross-selling potential through online casinos and sports betting remains steadfast.

CEO and Co-founder of DraftKings issued a statement saying “We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem.” He further highlights the improved effort of the iGaming company’s customer acquisition and customized product innovation while broadening its footprint in the sportsbook and iGaming market.

One of the key steps to follow after this completed acquisition is the integration of Jackpocket into DraftKings operations. The company is focused on staying consistent when it comes to delivering unprecedented gaming experiences to its existing and new customer base. Of course, it isn’t lost on DraftKings to push for more responsible gaming initiatives while providing safe, innovative, and interactive real-money gaming options.

Long-term Implications of the Deal

While the DraftKing acquisition is well received by Jackpocket, prominent stock analysts disagree over the deal's long-term effects. The reputable sportsbook company unlocked an incremental cross-selling vertical" through Jackpocket, with possibilities for single-wallet integrations, according to a February analysis by Jordan Bender of JMP Securities.

DraftKings anticipates that the Proposed Transaction will result in an extra $260 million to $340 million in revenue and $60 million to $100 million in adjusted EBITDA in fiscal year 2026, assuming conservatively that there are no further OSB and iGaming legalizations in the US.

About DraftKings

Founded in 2012 and headquartered in Boston, DraftKings Inc. is a well-known provider of digital sports entertainment and gambling. They provide digital media, regulated gaming, and daily fantasy. DraftKings is a major player in iGaming and sports betting, operating in 26 states as well as Ontario, Canada. They stress responsible gaming and corporate social responsibility and have partnerships with major sports leagues.

About Jackpocket

Jackpocket is an online lottery app that aims to provide a lottery participation method that is more responsible, enjoyable, and convenient for savvy digital players. Ordering official state lottery tickets is made simple and secure with Jackpocket, the first lottery app in the US to be licensed by a third party. Arizona, Arkansas, Colorado, Idaho, Massachusetts, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Puerto Rico, Texas, Washington, D.C., and West Virginia are the current states where Jackpocket is accessible.