DraftKings Officially Acquires Jackpocket After $750 Million Deal

DraftKings made another major move in the online gambling industry this week.

The industry giant announced that they have completed a deal to acquire Jackpocket for around $750 million. The massive deal is seen as a major victory for DraftKings, further boosting their already massive presence in the US online gambling market.

The acquisition will help DraftKings in a couple of different ways. The first was to help grow their userbase for their sportsbook, DFS site, and online casino. The deal will give them the ability to cross market their products on the popular Jackpocket sites, which has a presence in 15 states.

The other benefit from this deal is that it allows DraftKings the opportunity to become a player in lottery games. Unlike online casinos, lottery games can be played in states that have not legalized gambling.

“We are well-prepared to quickly launch cross-sell programs, further improve customer acquisition efficiency, and continue to innovate and differentiate with our overall product portfolio for our customers.” Stated a press release from DraftKings. “We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem.”

Jackpocket is expected to remain operational as they are transitioned into the DraftKings brand.

The acquisition of Jackpocket is just the latest move to expand the DraftKings brand. They have been buying up smaller competitors over the last few years. Their biggest move came in May 2022 when they acquired Golden Nugget Online Gaming, Inc. The move gave DraftKings access to a large userbase as well as ownership of a well-known brand in the industry.

DraftKings’ deal with Golden Nugget capped off their growth in the online casino industry, leading to them turning their focus to lottery games. While Jackpocket is one of the more popular New Jersey online casinos, it is the only state where that platform is live.

While DraftKings dominated the legal online sports betting market, they still trail several other operators when it comes to revenue from online casinos.

As impressive as their acquisition of Jackpocket is, DraftKings saw their stock price take a nosedive this week. The drop was a result of a new progressive tax proposal in Illinois, which could raise the rate for DraftKings from 15% to 40%.

While DraftKings is fighting the tax proposal hard, they hope their expansion in the online gambling industry can help make up for any lost revenue. That is especially true for lottery games, which have become a market that many operators are hoping to break into.