DraftKings has set its sights on expanding its footprint in the United States with the acquisition of Jackpocket, a prominent digital lottery app. The deal, valued at an estimated $750 million, marks a significant milestone for DraftKings as it ventures into the burgeoning US lottery market while bolstering its position in the Sportsbook and iGaming sectors.

The acquisition of Jackpocket represents a strategic move by DraftKings to diversify its offerings and tap into the lucrative digital lottery space. By integrating Jackpocket’s innovative platform and customer acquisition engine, DraftKings aims to enhance its product portfolio and deliver an unparalleled gaming experience to its users.

DraftKings Co-Founder and CEO, Jason Robins, expressed enthusiasm about the acquisition, highlighting the potential for value creation and market expansion. Robins emphasized the synergies between DraftKings and Jackpocket, citing the opportunity to leverage Jackpocket’s expertise in lottery operations to drive growth and profitability for both companies.

Under the terms of the merger agreement, Jackpocket shareholders will receive a combination of cash and DraftKings’ Class A common stock, totaling approximately $750 million. The agreement includes provisions for adjustments and a collar mechanism based on DraftKings’ stock price, ensuring equitable outcomes for all parties involved.

DraftKings forecasts substantial incremental revenue and Adjusted EBITDA following the acquisition, with projected revenue ranging from $260 million to $340 million and Adjusted EBITDA of $60 million to $100 million for fiscal year 2026. These optimistic projections underscore the company’s confidence in the long-term success of the merger and its potential to drive shareholder value.

Both DraftKings and Jackpocket are committed to promoting responsible gaming practices and supporting initiatives to address problem gambling. As members of the National Council on Problem Gambling, they provide tools and resources to help users make informed decisions and maintain healthy gaming habits.

The acquisition of Jackpocket builds on DraftKings’ track record of innovation and strategic partnerships in the gaming industry. Earlier collaborations, such as the partnership with the Oregon Lottery to offer Super Bowl bets, demonstrate DraftKings’ commitment to delivering innovative and engaging gaming experiences to its customers.

DraftKings’ acquisition of Jackpocket marks a significant step forward in the company’s growth strategy, positioning it for success in the dynamic US gaming market. With a focus on innovation, value creation, and responsible gaming, DraftKings is poised to capitalize on emerging opportunities and deliver long-term value to its stakeholders.

Leave a Reply

Your email address will not be published. Required fields are marked *