A popular mobile sports betting and online casino company is adding a fresh element to its real-money gaming products as well as new markets.
DraftKings announced on Thursday the finalization of a deal to acquire Jackpocket, a digital service that allows users to play state and national lottery games on an app.
“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,” DraftKings CEO Jason Robins said in a statement. “We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem.”
DraftKings announced in February that it had reached an agreement to purchase Jackpocket for $750 million and gives an already growing online gaming company access to the lottery market.
Enhanced gaming, profits
DraftKings agreed to send roughly $412.5 million in balance sheet cash to Jackpocket with the remaining $337.5 million coming in the form of common shares.
DraftKings is looking to add $260 to $340 million in revenue in 2026 as it integrates Jackpocket into its existing mobile and retail sports wagering, iGaming, and fantasy sports products.
DraftKings Sportsbook currently operates in 27 U.S. jurisdictions and Ontario, Canada. Its online casino is active in five states and Ontario while the daily fantasy sports product operates in 44 states, some Canadian provinces, and the U.K.
Lottery vertical
Jackpocket is the first third-party lottery app licensed in the U.S. Users can fund their account, purchase tickets, such as Powerball, and send someone to obtain the ticket. Winnings are added to the app.
The digital service is available in Arizona, Arkansas, Colorado, Idaho, Massachusetts, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Puerto Rico, Texas, Washington D.C., and West Virginia.
This gives DraftKings access to states where sports betting isn’t legal, like Minnesota and Texas. Sports betting and DFS is prohibited in Montana and Idaho as well, so this will be DraftKings’ first entry into those markets.
“The completion of the acquisition represents an exciting new chapter for Jackpocket and DraftKings alike,” Jackpocket CEO Peter Sullivan said Thursday. “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.”
