DraftKings Inc., a prominent player in the sports betting industry, announced on Friday that it has brokered a deal to acquire U.S.-based digital lottery service provider, Jackpocket. The deal is estimated to be worth about $750 million, and it will be paid in both cash and company stock.
The payment structure of the deal consists of approximately $412.5 million in cash and around $337.5 million of DraftKings' class A common stock. The completion of the transaction is expected by the second half of 2024.
DraftKings highlighted that this acquisition will not only grant it access to the vast U.S. lottery industry, but it will also solidify its position in sportsbook and iGaming. The company aims to achieve this by increasing customer lifetime value, building upon demonstrated cross-sell capabilities, and enhancing its customer acquisition engine.
DraftKings forecasts that the acquisition will generate an additional $260 million to $340 million in revenue and $60 million to $100 million in adjusted EBITDA for the fiscal year 2026.
Following the announcement, DraftKings saw a 3.26 percent decrease in its shares, which closed at $43.01 per share on the Nasdaq.
