DraftKings Finalizes $750 Million Acquisition Of Digital Lottery App Jackpocket

It took a little more than three months since the deal was first announced, and on Thursday morning, it became official: Online gambling powerhouse DraftKings has completed its $750 million acquisition of online lottery courier Jackpocket.

“The completion of the acquisition represents an exciting new chapter for Jackpocket and DraftKings alike,” said Jackpocket CEO Peter Sullivan in a press release. “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. DraftKings’ proven reach and cutting-edge mobile platforms will continue to allow us to drive growth and innovation in the digital lottery vertical.”

The deal gives DraftKings access to more than one million Jackpocket users and allows the company, already among the top two nationally in each of online sports betting, online casino, and daily fantasy sports categories, to further diversify its offerings.

“Today we are announcing the completion of our acquisition of Jackpocket, and the commencement of our value creation plan,” DraftKings CEO Jason Robins said. “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. We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem.”

How does a lottery courier work?

The Jackpocket app allows lottery customers to buy tickets online, with representatives of the company taking the orders and purchasing the tickets in person — a process often related within the industry as akin to UberEats. Jackpocket is approved and regulated in 19 U.S. jurisdictions, the most of any lottery courier company.

When the deal was first announced, DraftKings estimated Jackpocket would generate up to $340 million in additional annual revenue.

Bettor Capital’s Dave VanEgmond told Lottery Geeks in February that he viewed DraftKings’ entry into the lottery market “as a net positive. It certainly validates the investment that’s going on in the digitalization of the lottery. I think it’ll be net positive to further expansion, whether that’s through legislation or more lottery directors approving and permitting the courier model.”

Ahead of the acquisition, Jackpocket launched its own online casino, simply branded Jackpocket Casino, in one state, New Jersey. DraftKings Casino also operates in New Jersey.

DraftKings said in the release that its focus, now that the deal is finalized, is on “integrating Jackpocket into its operations and leveraging synergies to drive sustained growth and value creation.”

Previously, in March, DraftKings tapped Jason Park to hand over the reins as chief financial officer, a position he held since 2019, to enter a newly crafted role as chief transformation officer. Park is tasked with integrating and utilizing the new asset in Jackpocket, among other things.

“[Park’s] unique skill set, based on his accomplishments over the last five years as our chief financial officer and 11 years as a private equity operating partner, will allow us to further improve how we operate,” Robins said in mid-March. “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.”

Park wrapped up his duties as CFO on May 1 , making way for Alan Ellingson, DraftKings senior vice president, finance and analytics, who joined the company in 2020.