Post by Blitz on May 26, 2024 6:48:13 GMT -5
DraftKings completes $750M acquisition of Jackpocket
By Christian Lee - May 23, 2024
sbcamericas.com/2024/05/23/draftkings-jackpocket-acquisition-2/
DraftKings has completed its $750 million acquisition of lottery courier Jackpocket.
The operator first announced the proposed acquisition in February and will pay the total consideration with a combination of cash and DraftKings class A common stocks which will be issued to Jackpocket shareholders.
Following the closure of the deal, Jackpocket will be integrated into DraftKings operations.
DraftKings expects the deal to drive up to $340 million growth in incremental revenue and up to $100 million in incremental adjusted EBITDA in the 2026 fiscal year, with further growth expected by the end of 2028.
Jacpocket acquisition can bolster customer acquisition
According to DraftKings, the acquisition will also allow the company to tap into the U.S. lottery vertical while bolstering its customer acquisition capabilities.
In an earnings call following the announcement, DraftKings CEO Jason Robins highlighted the value of acquiring Jackpocket’s customer database and the power for cross-selling. He cited research that found online lottery players are much more likely to play other verticals such as sports betting and iGaming.
“What Jackpocket does is it creates more of those big mass cheap customer acquisition opportunities during the year. It could be any time right, like the middle of August when there’s suddenly a billion dollar jackpot and we’re the only ones who are able to actually acquire in mass,” added Robins on the call.
Jackpocket is currently available in 16 U.S. states as well as Washington D.C. and Puerto Rico. It also has an online casino presence, recently launching its first iteration in New Jersey.
Jackpocket CEO Peter Sullivan said that the completion of the acquisition by DraftKings represents “an exciting new chapter” in the two companies’ journey and that harnessing its reach and mobile platforms will allow Jackpocket to “drive growth and innovation” in the digital lottery vertical.
DraftKings acquire Sports IQ
Jackpocket is not the only company that has been acquired by DraftKings in recent times.
Earlier this month, Sports IQ Analytics CEO Omer Dor confirmed that DraftKings had agreed a deal to acquire the oddsmaker and player prop provider.
In a LinkedIn post, Dor said his team was excited to join an ambitious team at DraftKings. He also thanked his fellow co-founders of the company as well as those who had invested in the firm, including Boston Red Sox CEO Sam Kennedy and Fenway Sports Group president Mike Gordon.
By Christian Lee - May 23, 2024
sbcamericas.com/2024/05/23/draftkings-jackpocket-acquisition-2/
DraftKings has completed its $750 million acquisition of lottery courier Jackpocket.
The operator first announced the proposed acquisition in February and will pay the total consideration with a combination of cash and DraftKings class A common stocks which will be issued to Jackpocket shareholders.
Following the closure of the deal, Jackpocket will be integrated into DraftKings operations.
DraftKings expects the deal to drive up to $340 million growth in incremental revenue and up to $100 million in incremental adjusted EBITDA in the 2026 fiscal year, with further growth expected by the end of 2028.
Jacpocket acquisition can bolster customer acquisition
According to DraftKings, the acquisition will also allow the company to tap into the U.S. lottery vertical while bolstering its customer acquisition capabilities.
In an earnings call following the announcement, DraftKings CEO Jason Robins highlighted the value of acquiring Jackpocket’s customer database and the power for cross-selling. He cited research that found online lottery players are much more likely to play other verticals such as sports betting and iGaming.
“What Jackpocket does is it creates more of those big mass cheap customer acquisition opportunities during the year. It could be any time right, like the middle of August when there’s suddenly a billion dollar jackpot and we’re the only ones who are able to actually acquire in mass,” added Robins on the call.
Jackpocket is currently available in 16 U.S. states as well as Washington D.C. and Puerto Rico. It also has an online casino presence, recently launching its first iteration in New Jersey.
Jackpocket CEO Peter Sullivan said that the completion of the acquisition by DraftKings represents “an exciting new chapter” in the two companies’ journey and that harnessing its reach and mobile platforms will allow Jackpocket to “drive growth and innovation” in the digital lottery vertical.
DraftKings acquire Sports IQ
Jackpocket is not the only company that has been acquired by DraftKings in recent times.
Earlier this month, Sports IQ Analytics CEO Omer Dor confirmed that DraftKings had agreed a deal to acquire the oddsmaker and player prop provider.
In a LinkedIn post, Dor said his team was excited to join an ambitious team at DraftKings. He also thanked his fellow co-founders of the company as well as those who had invested in the firm, including Boston Red Sox CEO Sam Kennedy and Fenway Sports Group president Mike Gordon.
