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DraftKings Acquires Jackpocket for $750 Million: A Major Leap in Digital Gaming and Lottery
DraftKings, a big player in the digital sports entertainment and online betting segment, has agreed to absorb Jackpocket, which deals in lotteries, for $750M. This acquisition plan signals DraftKings’ intent to penetrate the emerging online lottery market to attract a new consumer base of occasional gamers.
The Rationale Behind the Acquisition
The New York City-based Jackpocket was started in 2013 which changed the approach to lottery games by allowing them to be accessed on mobile devices and purchased from a list of state-licensed retailers that are partnered with the companies. Where the app excels is in presenting clients with convenience, along with adhering to standard operating procedures inherent in the whole of the gaming industry. By purchasing Jackpocket, DraftKings is looking to expand and get out of the sportsbook and online casino business.
The market of digital lottery is still expected to expand, as the total sales reached around $12 billion in 2023, due to the rising focus on the usage of smartphones as well as preferences for convenient forms of gaming. This market presents a horizon for DraftKings and is consistent with the firm’s attempts to focus its offerings on the most mobile-first populated markets with a…
