DraftKings will pay approximately 55% of the purchase price in cash, utilizing its balance sheet without the need for a capital raise. This move aligns with DraftKings’ strong financial position as shown in its Q4 results, where it reported current cash assets of $1.27bn. Additionally, DraftKings has increased its fiscal year 2024 revenue guidance to up to $4.9bn following a successful end to 2023.
Market leader Jackpocket allows customers to purchase official lottery tickets in multiple states, with availability in 18 US jurisdictions such as New York, Texas, and Ohio. Jackpocket’s app outperformed competitors in the digital lottery app category, with nine times more downloads in fiscal year 2023.
The acquisition of Jackpocket will not only provide DraftKings access to the US lottery industry but also strengthen its position in sportsbook and igaming, leading to higher customer lifetime value. DraftKings expects the deal to drive significant incremental revenue and adjusted EBITDA in the coming years.
DraftKings’ CEO, Jason Robins, expressed excitement about entering the US digital lottery market through the Jackpocket acquisition, emphasizing the value it will bring to customers and the company’s overall growth strategy. The collaboration between DraftKings and Jackpocket is expected to expand the digital lottery vertical and enhance the customer experience.
Looking ahead, DraftKings anticipates leveraging Jackpocket’s technology, brand, and management team to drive additional revenue and profitability in the future. The company’s recent partnership with Barstool Sports further solidifies its presence in the sports betting industry, reinforcing its commitment to delivering innovative betting solutions to customers.
