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DraftKings Starts Integration of Jackpocket Following Completion of $750M Deal

DraftKings plans to leverage the extensive US lottery market while enhancing its current offerings, which is expected to increase customer lifetime value and improve customer acquisition strategies.

DraftKings Starts Integration of Jackpocket Following Completion of $750M Deal
DraftKings Starts Integration of Jackpocket Following Completion of $750M Deal

DraftKings announced its intention to acquire Jackpocket in February 2024, projecting the lottery app would bring in up to $340 million in additional annual revenue. The company is now focusing on integrating Jackpocket into its operations, aiming to harness synergies for long-term growth. DraftKings plans to leverage the extensive US lottery market while enhancing its current offerings, which is expected to increase customer lifetime value and improve customer acquisition strategies.

“We are excited to announce the completion of our Jackpocket acquisition and the launch of our value creation plan,” said Jason Robins, CEO and co-founder of DraftKings.

“We are prepared to quickly implement cross-sell programs, enhance customer acquisition efficiency, and continue to innovate our product portfolio for our customers.”

Ed Birkin, senior analyst at H2 Gambling Capital, commented on the deal, saying, “It appears to be a positive acquisition, offering diversification, potential for significant market growth, and an additional customer acquisition channel.”

How DraftKings Will Drive Jackpocket's Growth

As the market leader, Jackpocket allows customers to order official lottery tickets in multiple states and is available in 18 US jurisdictions, including New York, Texas, and Ohio. The New York-based company reported that its app was downloaded nine times more than its nearest competitor in 2023.

“The completion of this acquisition marks an exciting new chapter,” said Peter Sullivan, CEO of Jackpocket. “We believe that together, we can better support lotteries in delivering revenue to their beneficiaries. DraftKings’ extensive reach and innovative mobile platforms will enable us to drive growth and innovation in the digital lottery sector.”

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