DraftKings reached an agreement to acquire Jackpocket — the lottery app — for $750 million, the company announced on Thursday.
Jackpocket is the leading lottery app in the United States and app users can play the lottery right from their phones.
"ThepProposed transaction will enable DraftKings to access and grow into the massive U.S. lottery industry," DraftKings said in a statement. "But more importantly, [DraftKings will be able to] strengthen its position in Sportsbook and iGaming through higher customer lifetime value."
Jackpocket users can play some of the big lotteries such as Powerball and Mega Millions, as well as smaller local lotteries and scratch tickets.
“Together with DraftKings, we will be able to bring tremendous value to our customer base as we advance our mission to create a more convenient, fun and responsible way to take part in the lottery,” said Peter Sullivan, CEO of Jackpocket. “DraftKings’ broad footprint and exceptional mobile products present an opportunity to meaningfully expand the digital lottery vertical, and we could not be more excited to come together with DraftKings.”
DraftKings continues its takeover of the gaming industry. The digital sports entertainment and gaming company was originally created for Daily Fantasy Sports. The company now has a stronghold on DFS, sports betting, iCasino and the lottery.
“We are very excited to enter the rapidly growing U.S. digital lottery vertical with our acquisition of Jackpocket,” said Jason Robins, Co-founder and CEO of DraftKings. “This transaction will create significant value for DraftKings not only by giving our customers another differentiated product to enjoy, but also by improving our overall marketing efficiency similar to how our daily fantasy sports database created an advantage for DraftKings in OSB and iGaming.”
