DraftKings finalizes $750m deal to buy out Jackpocket

DraftKings has stolen another march on the gambling market in the United States, with the company confirming that it has finalized the deal to purchase Jackpocket Inc, America’s largest digital lottery app, in a deal valued at $750m, three months after the move was announced in February.

Commenting on this opportunity, DraftKings CEO and Co-Founder Jason Robins said that this acquisition was an important cog in the company’s machinery called "value creation plan," with one of the immediate plans being the launch of cross-sell programs to help bolster customer acquisition efficiency and continue to bring innovative products to players.

"We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem," Robins added.

Jackpocket has quickly earned a good name for itself in the United States, having become one of the dominating forces in the sale of digital lottery products, and making it possible for Americans in far-flung places to purchase tickets quickly and efficiently, which has often paid out in the form of headline-grabbing jackpot wins by players.

More importantly for DraftKings specifically, however, the acquisition allows the company to break ground into the highly lucrative lottery market in the United States, which further enhances the gaming giant’s existing portfolio which has so far focused on sports betting, fantasy sports, and iGaming.

The deal was met on a similarly upbeat note by Jackpocket CEO Peter Sullivan, who welcomed the finalization of the deal as the beginning of a new chapter for both his company and DraftKings.

"Together, we are confident that we will be even more capable of helping lotteries fulfil their mission of delivering revenue back to the beneficiaries they support," Sulivan observed. He noted that thanks to DraftKings’ technological capacity, reach, and existing resources, Jackpocket only stands to benefit as it continues to expand in the dynamic and synergetic lottery sector in the country.

DraftKings is fairly confident about the purchase as well, as it expects this deal to have an impact of anything between $260m and $340m in incremental revenue in FY 2026, along with another $60m to $100m in adjusted EBITDA. DraftKings projects further strengths and gains in both revenue and EBITDA over the years after FY 2026, as well, with the company confident that it will realize a significant return on its investment, as Jackpocket’s product reach continues to also expand.

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