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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.

In the latest bid to perhaps save its ailing reputation, Star Entertainment, the once-famous (and now infamous) Australian casino company behind three casinos in Sydney, the Gold Coast, and Brisbane, has recently garnered renewed attention as it announced that it had received some interest in a takeover from Hard Rock International. The renowned company, however, denies this, and Hard Rock International has been quick to say that it has never expressed any interest whatsoever in acquiring Star Entertainment. These are somewhat serious allegations, and it seems that Hard Rock International is even upset at being associated with the embattled Star Entertainment. It is notable that soon after Star Entertainment announced this, its shares went up by 20%.

Earlier this week, Hard Rock International released a statement about the whole affair through its public relations arm, stating that “…Hard Rock International is not involved in, nor has it authorized, any discussions, activities, or negotiations on its behalf, (particularly) in connection with a proposed bid for Star.”

The statement reiterates the fact that Hard Rock International has distinctly not authorized the use of its brand when it comes to any dealings or connections with Star Entertainment, whether it’s by the Hard Rock brand itself or any purported third party. Hard Rock International continues, “Our brand is built on a legacy of integrity, excellence, and a commitment to our guests, partners, and team members worldwide. Any misuse of the Hard Rock name in unauthorized business dealings is taken very seriously. We are currently investigating this matter and will pursue all necessary legal actions to protect our brand and reputation.”

This comes after Star Entertainment said that it had received attention from an investor group that called itself Hard Rock Hotels & Resorts (Pacific). Several news outlets had also spread the report, including the Australian Financial Review, which reported on Monday that Hard Rock had expressed interest in taking over Star Entertainment and putting in the renewed capital needed to help Star Entertainment gain back its momentum.

However, there is some confusion as to the group’s identity, especially since Hard Rock International’s statement denying its bid for a takeover of the said company.

After Hard Rock International’s denial, Star Entertainment’s shares went down by 10%. On the other hand, when Star Entertainment had announced that Hard Rock had expressed some interest in taking over its operations, its shares went up by 20%. The beleaguered company has had the wind knocked out of its sails, observed Tim Waterer, chief analyst for KCM Trade, and Star Entertainment continues to seek out possible investors as it struggles to stay afloat.

Earlier, when Star Entertainment announced that it had received significant interest from Hard Rock Hotels & Resorts (Pacific), it also said this was a local partner of Hard Rock International. But later on, it changed its statement, saying that it had not heard from Hard Rock International directly.

Star Entertainment’s toughest year yet

It must be noted that the past year was one of the most difficult for the company, as Star Entertainment faced a series of challenges and setbacks. Over the last 18 months, Star Entertainment has battled allegations of inviting well-known evaders of the law to play at its three casinos, and it has also been accused of offering insufficient safeguards against money laundering. As if these accusations weren’t enough, Star Entertainment also had to deal with the fall from grace and resignation of David Foster, its chairman, in the early part of 2024. Mr. Foster is additionally facing penalties and fines. It has been a tough year for Star Entertainment, despite having all three of its casinos open to the public.

Meanwhile, it is not a secret that Hard Rock International is merging with other casino companies, starting with its much-publicized purchase of 888 Holdings plc. The takeover will be finalized later on in the year, so Hard Rock is buying companies – just not Star Entertainment. And there are additional reports that Hard Rock International is set to solidify its hold on the gambling space in the US, which would explain its acquisition of 888 Holdings. It’s also not denying this, as it has said that it’s looking to add to its casino portfolio. As for Star Entertainment, it doesn’t look like it will be acquired by Hard Rock International anytime soon.

Amidst the allegations that Star Entertainment is facing, it remains hopeful that it will overcome its many challenges and will find probable suitors in the near future.

Everyone has a general idea of what 888 Holdings plc represents, especially the residents of New Jersey. 888 Holdings plc, a major player in the online gaming sector, has just announced that it will begin shutting down its 888poker and 888casino platforms in the United States, starting June 3. This decision, which 888 Holdings made public this week, marks a significant shift in the ever-changing online gambling landscape, particularly since it affects players in New Jersey, where it first started.

But despite this closure, there’s still some good news: the Tri-State agreement which facilitates live poker rooms for World Series of Poker (WSOP) participants in Nevada, Michigan, and New Jersey will remain unaffected. Needless to say, the cooperative agreement has been crucial for maintaining a robust live poker environment for players in these states.

The announcement of 888 Holdings' withdrawal from the U.S. market is not entirely unexpected. As far back as February, the company began divesting its assets in the US to Hard Rock Digital. As most everyone is aware, Hard Rock Digital is the online arm operated by the Seminole Tribe of Florida, and the Tribe will likely use the platform to expand its brand and operations outside Florida.

In the meantime, this move followed the termination of 888 Holdings’ partnership with SI Sportsbook, a collaboration that had initially supported its sports betting platform and was promising at first. But perhaps these strategic shifts were indeed a sign that called for a broader restructuring of 888 Holdings' U.S. operations. Either way, there is no official statement from 888 Holdings regarding the closure as of this time, and the only indication of the exit is an email sent to consumers. But it is highly likely that an official announcement will be issued in the coming days – though the June 3 closure is already in the cards.

An underwhelming performance coupled with meager revenues

Suffice it to say that the performance of 888poker in New Jersey has lately been underwhelming, to say the least. In March, the platform accounted for less than 1% of the state's online poker market, a clear indication of its struggles. And the recent decision by New Jersey regulators to release revenue figures for individual online casino operators, rather than just license holders, further highlighted 888poker's poor performance. Case in point: in January, the platform generated only $48,000 in revenue, representing a meager .006% share of the market. In stark contrast, PartyPoker, its nearest competitor, recorded revenues exceeding $530,000 in the same month alone.

It’s worth noting, however, that this closure marks a crucial moment in New Jersey's online poker history. In fact, it will be the first time in nearly a decade that an online poker platform has exited the state's market. Incidentally, players currently using 888poker and 888casino are advised to withdraw their funds by June 3. However, for those who do not manage to do so, 888 Holdings has assured that checks will be mailed over the coming months to ensure all players receive their remaining balances.

While the World Series of Poker’s operations seem to be stable and ongoing, it appears that Hard Rock Digital has no plans to revive 888’s poker platform. This decision leaves a gap in the New Jersey online poker market, which, as we all know, is one of the six states in the U.S. where online poker is legal. New Jersey, along with Nevada and Michigan, remains an integral part of the WSOP's Tri-State agreement, which continues to provide a vibrant live poker scene for players in these three states.

888 Holdings’ overall impact

The impact of 888 Holdings' withdrawal will likely be felt by the broader online gaming community in New Jersey. As the state continues to evolve through its regulatory frameworks, gaming operators and companies will need to adapt to the increasingly transparent and competitive market environment.

The closure of 888poker and 888casino by 888 Holdings represents a significant change in the U.S. landscape for online casino gaming. Moreover, players in New Jersey and other states who are affected by this decision will need to transition to other platforms. Meanwhile, it’s fortunate that the WSOP's Tri-State agreement continues to be a cornerstone in live poker, ensuring that different players in Nevada, Michigan, and New Jersey can still enjoy competitive poker experiences. For now, the casino industry will be closely watching how these changes unfold and what they mean for the future of online gaming in the U.S.

There’s some great news coming out of both Pennsylvania and Michigan this year, and it seems to be an ongoing and continuous trend: the casino sector is raking in the big bucks, with record revenues coming in for the two states, according to the Pennsylvania Gaming Control Board and the Michigan Gaming Control Board, respectively. In Pennsylvania, the revenue reached a whopping total of $212.2 million last April, and although this is still lower than the $233 million raked in last March, it is still a substantial amount, and from all indications, it looks like Pennsylvania can confidently set the benchmark at $200 million. In fact, it has proven to be a solid benchmark, because it hasn’t gone below $200 million in revenue since February, 2024.

Meanwhile, the stage has been set for Michigan as well, with initial reports showing that the state has reached an amazing growth trajectory of $192.2 million this April. Even though the numbers have declined somewhat compared to March, the casino gaming market is still showing consistent growth in the Wolverine State since April of last year, when it reached a revenue of almost $160 million – this signals a year-over-year increase of 21%.

Pennsylvania: a remarkable growth in April, particularly for online casino games

The online gambling sector in Pennsylvania continues to flourish, with the latest figures revealing a significant surge in revenue. In April 2024, online casino games generated a gross revenue of almost $174 million, marking a substantial 26.39% increase compared to the $137.2 million earned in April 2023. The impressive growth highlights the state's strong position in the online gambling market today.

Aside from this, the total tax revenue collected from internet gaming in April 2024 reached approximately $76 million, providing a considerable boost to Pennsylvania's coffers. This trend indicates that the state is well-positioned to benefit from the expanding online gaming industry for the foreseeable future.

Not surprisingly, slot games continued to be a major source of revenue for online casinos in April, contributing around $126 million to total earnings. Although this figure is slightly lower than the almost $135.6 million generated in March, slots remain the most popular and profitable segment of online gambling in Pennsylvania. The slight dip in revenue does not overshadow the overall robust performance of the sector at all.

It is also worth noting that table games, while generating significantly less revenue than slots, still brought in a notable $45 million in April, representing a decrease from the previous month's total of just over $53 million - yet it remains a vital part of the PA gaming ecosystem. Online poker, however, continues to lag behind other casino offerings, with revenues of a little over $2.4 million in April. But the potential for growth in this segment remains high, particularly if the multi-state poker online agreement materializes. As you may know, the agreement could allow players from different states to participate in games together, potentially boosting player engagement and revenue.

Despite the fluctuations in specific game categories, the overall revenue of $173,425,559 from online casinos in April is a testament to Pennsylvania's thriving online gambling sector.

An encouraging sign: Michigan’s ascent next only to Pennsylvania

The iGaming market in Michigan has experienced significant growth over the past year as well. Although industry analysts had anticipated a new monthly record in April, the actual figures remain impressive. April 2024 stands as the second-best month in the history of Michigan’s iGaming market (which spans 40 months). This continued growth reflects a robust, thriving market, with positive implications not only for operators but also for the state’s financial health. Even the state treasury and municipalities collectively garnered $35.8 million in taxes from iGaming activities in April alone.

What’s interesting is that FanDuel Casino has maintained its dominant position in Michigan’s online casino market. After overtaking BetMGM Casino in March as the top-performing online casino by revenue, FanDuel continued its strong performance into April. As a matter of fact, the company reported $50.7 million in bets, slightly surpassing BetMGM’s $49.8 million.

As of April, FanDuel’s overall revenue in Michigan reached an impressive $1.05 billion since its launch in January 2021. But BetMGM Casino is the only other operator to surpass the billion-dollar threshold, and it holds an impressive lead with a lifetime revenue of $1.80 billion.

On the national stage, Michigan’s iGaming sector secured the second position in April 2024. Leading the pack is Pennsylvania, with $212.2 million in revenue, while New Jersey’s market, generating $187.9 million, ranks third. But analysts predict that Michigan has the potential to challenge Pennsylvania for the top spot by the end of 2024.

The possibility of Michigan emerging as the US’s leading iGaming market is reinforced by its performance metrics. In March, Michigan operators recorded more bets than Pennsylvania did in April, for instance. Moreover, the market's appeal is further enhanced by the preference of most software developers and operators to debut a number of their games in Michigan, further strengthening its status as a key player in the iGaming industry.

There is no doubt that the past year has been transformative for Michigan’s iGaming market, characterized by robust growth and significant milestones. For all intents and purposes, Michigan is poised to become a dominant force in the US iGaming landscape, second only to the leader, Pennsylvania. But as the market continues to expand and the shifting tide may once again change, the economic benefits are undeniable, marking a prosperous future for both the Great Lakes State and the Keystone State in the online gaming arena.