US sportsbook DraftKings has announced the purchase of US lottery ticket app Jackpocket for $750 million.
The deal allows DraftKings to expand its list of secondary offerings into the lottery gaming market, growing its user base.
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This, however, is secondary to the company’s overall strategy of further expanding its sports betting and igaming business by capitalizing on the expanded user-base with cross-platform promotion and customer acquisition strategies.
The deal will also, according to DraftKings, grow the "customer lifetime value" of a DraftKings account by strengthening its offerings, growing customer retention.
A 55% share of the $750 million consideration is made up of cash, while the remaining 45% is composed of DraftKings stock.
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DraftKings chief executive and co-founder Jason Robins said: "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 [online sports betting] and igaming.”
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By GlobalDataPeter Sullivan, chief executive of Jackpocket, added: “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 announcement will strengthen DraftKings’ position in the sportsbook market amid growing competition from ESPN Bet, the sports betting joint venture of broadcaster ESPN and betting firm PENN Entertainment.
Recently, ESPN Bet announced the purchase of a New York sports wagering license from embattled bettor WynnBet, allowing it to become one of the nine sportsbooks legally allowed to operate in the state, of which DraftKings is also one.
ESPN Bet has grown rapidly since its launch in November 2023, now operating in 18 states across the US and likely prompting other bettors such as DraftKings to expand their offerings.
Earlier in February, DraftKings partnered with US sports media company Barstool, while rival BetMGM announced a deal with social media platform X (formerly known as Twitter) to integrate betting odds into its sports pages.
