Boston-based gaming company, DraftKings, recently completed the $750 million sale of lottery app, Jackpocket, and the company has plans to integrate its newest acquisition as soon as possible.
Let’s take a closer look at the acquisition and its potential impact on the top-rated sportsbooks in the region.
Mission Accomplished
It has been a relatively quick and seamless deal between DraftKings and Jackpocket that began in February and ended only eight weeks later which will see the gaming titan add another gambling option for its patrons into its mobile platform. The lottery app is expected to generate $340 million in revenue per year.
Jason Robins, CEO and Co-founder of DraftKings, said: “Today we are announcing the completion of our acquisition of Jackpocket and the commencement of our value creation plan. We are well-prepared to quickly launch cross-sell programs, further improve customer acquisition efficiency, and continue to innovate and differentiate with our overall product portfolio for our customers.”
Peter Sullivan, CEO of Jackpocket, stated: “The completion of the acquisition represents an exciting new chapter for Jackpocket and DraftKings alike. Together, we are confident that we will be even more capable of helping lotteries fulfill their mission of delivering revenue back to the beneficiaries they support.”
Value Added
DraftKings is becoming a one-stop shop for a bettor’s online gaming needs as it currently offers daily fantasy sports, sports betting, iGaming in five of the seven states in which it is available, and now the lottery. DraftKings also has a horse racing app, DK Horse, which is not currently integrated into its main platform but can be found on a separate app.
The deal culminates at a time when DraftKings showed a glowing Q4 report including a 44% year-over-year rise in revenue from $855 million to $1.23 billion. The company’s revenue in 2023 soared 63% from the previous year to $3.7 billion. This newest addition is expected to add more value to the company and bolster its bottom line.
Shuffling the Deck
In a recent C-suite reshuffling, Jason Park, DraftKings’ Chief Financial Officer, became DraftKings’ Chief Transformation Officer, which will see him incorporating avant-garde technologies into the platform and integrating new acquisitions, like Jackpocket, into the construction of the app. Alan Ellingson, DraftKings’ Senior Vice President of Finance and Analytics, has been chosen to replace Park as the company’s CFO, effective May 1, 2024.
Co-Founder and CEO, Jason Robins, released a statement that read, “I have asked Jason Park to take on a new role at DraftKings to address and capture large efficiency opportunities that I expect will generate significant incremental profitability over the coming years.
“… In addition, I’m confident he will unlock the benefits of our proposed acquisition of Jackpocket following its closing to strengthen DraftKings’ position in U.S. online gaming. There are also potentially transformational AI applications on the horizon that could change the way businesses operate and serve their customers to create potential long-term advantages.”
