DraftKings acquires Jackpocket in a $750M deal
On May 23rd DraftKings completed the $750 million acquisition of lottery courier Jackpocket.The company stated that this transaction will strengthen its capacity to...
DraftKings to purchase Jackpocket for $750m
Jackpocket will be acquired by DraftKings sometime in the second half of the year.
This latest purchase agreement will provide DraftKings with the ability to expand into the growing lottery market of the United States, where Jackpocket is one of the leading operators, in addition to enhancing its existing sports wagering and online gambling offerings through the proven cross-selling capacity of lottery services.
DraftKings’ CEO and Co-Founder, Jason Robins, remarked:
“We are delighted to have this ability to expand into the lottery sector of the US with the purchase of Jackpocket. This agreement will not only enable us to expand our catalog of offerings but also to enhance our marketing efforts through cross-selling opportunities.”
Jackpocket’s CEO, Peter Sullivan, commented:
“By collaborating with DraftKings, we will have the ability to provide our customer base with a set of enhanced offerings as we continue on our mission of delivering engaging and responsible lottery experiences. We are looking forward to a productive collaboration.”
This agreement’s total consideration of 750 million dollars will involve a cash payment of 55% of the total along with the transfer of DraftKings’ Class A shares to cover the remaining 45%. The purchasing firm mentioned that its initial estimation for the transaction’s returns will involve additional revenue of 260 million to 340 million dollars in the 2026 financial year, along with an EBITDA increase of 60 million to 100 million dollars. Moreover, this estimate assumes zero growth in the number of regulated sports wagering and online gambling markets in the United States, which is unlikely given the sector’s rapid expansion across the country.
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