DraftKings seals $750m deal to acquire Jackpocket app

DraftKings has agreed terms to acquire US lottery app Jackpocket in a deal that is set to be worth $750m.

The total consideration of $750m breaks down to $412.5m which will be paid in cash and approximately $337.5m in DraftKings class A common stocks which will be issued to Jackpocket shareholders.

DraftKings expects the deal, assuming no additional online sport betting  and igaming legalization in the US, to drive between $260m to $340m in incremental revenue and $60m to $100m incremental adjusted EBITDA in the 2026 fiscal year. It expects these figures to rise to $350m to $450m and $100m to $150m respectively in 2028.

“We are very excited to enter the rapidly growing US 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.”

Jackpocket is currently available in 16 US states as well as Washington D.C. and Puerto Rico. As well as a digital lottery courier service, Jackpocket is also delving into the world of online casino, recently launching its first iteration in New Jersey. 

On the deal, Jackpocket CEO Peter Sullivan, said: “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.

“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.”

The deal has been approved by the boards of both DraftKings and Jackpocket as well as Jackpocket shareholders

It has been a busy week for DraftKings, which also announced a multi-year deal to partner with Barstool Sports following the end of non-compete agreements put in place when Barstool was repurchased by Dave Portnoy from Penn Entertainment for $1.