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DraftKings finalizes Jackpocket acquisition to expand reach

EditorBrando Bricchi
Published 2024-05-24, 06:00 p/m
© Shutterstock
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BOSTON & NEW YORK - DraftKings Inc. (NASDAQ: NASDAQ:DKNG), a digital sports entertainment and gaming company, has completed its acquisition of Jackpocket Inc., a leading digital lottery app in the United States. This move aims to enhance DraftKings' position in the sportsbook and iGaming sectors by tapping into the U.S. lottery vertical and improving customer acquisition and lifetime value.

Jason Robins, CEO and Co-founder of DraftKings, expressed optimism about the integration of Jackpocket into the company's ecosystem, anticipating the launch of cross-sell programs and product portfolio improvements. "We look forward to continuing to deliver enhanced value to our customers and shareholders," said Robins.

Jackpocket's CEO, Peter Sullivan, echoed this sentiment, highlighting the combined capabilities of both companies to support lotteries and drive growth within the digital lottery space. The acquisition is expected to provide DraftKings with additional technology infrastructure and a robust brand presence.

With the acquisition now complete, DraftKings is focused on integrating Jackpocket's operations and leveraging synergies for sustained growth and value creation. The company remains committed to providing safe and engaging real-money gaming offerings responsibly.

DraftKings, headquartered in Boston, was launched in 2012 and has expanded its reach to include daily fantasy, regulated gaming, and digital media. It operates sports betting in 27 states and Ontario, Canada, and iGaming in five states and Ontario. With the addition of Jackpocket, DraftKings continues to enhance its product offerings and customer experience.

This news is based on a press release statement from DraftKings Inc. and reflects the company's strategic efforts to diversify and strengthen its market position within the digital gaming and entertainment industry.

InvestingPro Insights

As DraftKings Inc. (NASDAQ: DKNG) fortifies its market presence with the acquisition of Jackpocket, the financial metrics and analyst insights from InvestingPro paint a dynamic picture of the company's performance and prospects. With a market capitalization of 19.95 billion USD, DraftKings is a significant player in the digital sports entertainment and gaming industry. According to the latest InvestingPro data, the company has seen an impressive revenue growth of 57.0% over the last twelve months as of Q1 2024, showcasing its expanding influence and operational scale.

InvestingPro Tips suggest that analysts are optimistic about the company's future, expecting net income to grow this year. This is particularly relevant as the company embarks on integrating Jackpocket's offerings, which could potentially lead to enhanced profitability. Furthermore, analysts predict that DraftKings will be profitable this year, a significant milestone that could bolster investor confidence in the wake of the acquisition.

The company's stock has demonstrated high return over the last year, with a 72.64% increase in price total return, indicating robust market confidence and a positive reaction to its strategic initiatives. While DraftKings is not currently paying a dividend to shareholders, the focus on growth and expansion could be a compelling narrative for investors looking for capital appreciation.

For readers seeking a more comprehensive analysis of DraftKings' financial health and future outlook, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/DKNG. Interested users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information to inform their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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