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DraftKings’ Jackpocket acquisition  and predicted growth in 2024

DraftKings’ long-awaited buyout of lottery courier service Jackpocket is finally complete.  The sports betting company recently announced that the acquisition cost $750 million and that work will now begin on integrating Jackpocket’s unique offerings into its operations.  

Below, we’ll look at what Jackpocket does and how DraftKings’ market share is set to grow as a result. 

What does Jackpocket offer customers? 

Fundamentally, Jackpocket allows users to purchase lottery tickets. There are, however, a few significant benefits to doing it through them. The first is convenience—you can log onto the app and make your purchase without visiting a brick-and-mortar shop. 

The second benefit is perhaps even more appealing: Jackpocket allows users to purchase lottery tickets for competitions that may not be available in their state. Essentially,  Jackpocket bypasses geographical limitations and enables customers to participate in any lottery in America. 

Additionally, Jackpocket keeps customers informed of their results with a secure tracking system showing the time of the draw and potential winnings. 

How will DraftKings benefit? 

DraftKings estimates that the acquisition of Jackpocket will generate an additional $340  million in annual revenue. This announcement follows an exceptional start to 2024 with  DraftKings reporting a 50% increase in Q1 revenue compared to the same period in 2023. 

Remarkably, revenue soared from $769.7 million in the first quarter of 2023 to $1.18 billion in 2024. With forecasts for 2024 predicting revenue to peak between $4.8 billion and $5  billion, DraftKings might achieve as much as 36% year-on-year growth.

Put plainly, DraftKings’ accounts are the healthiest they’ve ever been with unprecedented cash flow enabling the company to make significant acquisitions like their recent purchase of Jackpocket. 

Of course, this buyout is poised to enhance DraftKings’ financial standing further once the integration is complete. 

Why is DraftKings so popular? 

DraftKings has established itself as a leader in sports betting. From unquie features such as  the SGPx to daily boosted odds, you can always find value in being a new or existing customer. 

With a captive audience and such healthy balance sheets, the company is also able to grow its popularity by offering generous sign-up bonuses. The DraftKings Sportsbook ‘No Sweat Bet’  bonus of up to $1500 is a good example as customers don’t have to worry about losing their first bet because if they do, DraftKings will credit their account with free bets totaling the sum of their first wager. 

It’s proven a powerful marketing tool with customers satisfied with getting a fair deal. In addition to the larger offer, new sign-ups can also opt for the more obtainable $150 new user offer. 

Moreover, with laws relaxing across the United States, the online gambling sector becomes more saturated by the day but DraftKings benefits from being a trusted name from the beginning. 

Part of the reason for this is that customers are given extensive betting markets to select from,  whether it’s the Super Bowl or the Premier League title race, DraftKings offers it all. 

What will DraftKings do next? 

While there are no public indications that DraftKings has another large acquisition lined up,  one can’t be ruled out owing to the flexibility their record earnings provide. In essence, if you have DraftKings stock, now is the time to hold onto it with the company set to experience substantial growth going into 2025.

Editorial Team

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