• Loading stock data...
Tuesday, April 16, 2024
  • -
    days
  • -
    hours
  • -
    minutes
  • -
    seconds

DraftKings Trends Toward the Black, Buys Lottery App

  • The sports gambling giant continues to narrow its losses.
  • The Jackpocket purchase will bring DraftKings into the lottery sector.
DraftKings
DraftKings

DraftKings continues to grow, but perhaps not as fast as Wall Street would like.

The sports gambling company posted quarterly results Thursday that missed multiple estimates but still increased its revenue by 44% year over year. Later in the day, the company announced it was expanding into lottery games by buying Jackpocket, a lottery app in a cash and stock deal for $750 million. 

“We are very excited to enter the rapidly growing U.S. digital lottery vertical with our acquisition of Jackpocket,” said Jason Robins, DraftKings CEO and cofounder. 

“This transaction will create significant value for DraftKings not only by giving our customers another differentiated product to enjoy but also by improving our overall marketing efficiency similar to how our daily fantasy sports database created an advantage for DraftKings in [online sportsbooks] and iGaming.”

DraftKings said it expects the Jackpocket deal to drive incremental revenue of roughly $260 million to $340 million in the 2026 fiscal year, and $350 million to $450 million by ’28. 

The company continues to trend toward profitability after years of losses. In the fourth quarter of 2023, DraftKings reported a net loss of $44.6 million, down from $242.7 million in the same period of ’22. Losses per share improved from 53 cents in ’22 to 10 cents in ’23. While the Jackpocket purchase may not close in ’24, the company doesn’t see the acquisition impacting its plans or trajectory as it continues to build out. 

“I think what you will see though is we’re going to stay very squarely on strategy,” Robins said on Friday’s earnings call. “We talked about how priority A is winning in the U.S., and I think Jackpocket is absolutely in line with that. Lottery is the oldest form of gaming in the U.S. It’s been around forever. The audience is massive.”

Excluding the Jackpocket deal, DraftKings increased its fiscal guidance for 2024 between $410 million and $510 million, compared to $350 million and $450 million in ’23.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Caitlin Clark Drives Massive WNBA Draft Audience for ESPN

Clark’s coronation was the most-watched WNBA telecast in decades.

Mythical Knicks Pitch to LeBron James With ‘Sopranos,’ Trump, Weinstein Leaks 14 Years Later

Video shows Tony and Carmela Soprano recruiting LeBron James to the Knicks.

WNBA Draft Fashion Has Come a Long Way From ‘Most Athletic Accountants’ Era

The WNBA draft used to have a strict dress code, a former top pick tells FOS.

Does Golf TV Have A Scottie Scheffler Problem?

Masters ratings were down 20% this year.
podcast thumbnail mobile
Front Office Sports Today

Inside the Most-Hyped WNBA Draft in History

0:00
0:00

Featured Today

Women’s Basketball Finally Has a TV Deal to Match the Excitement. Now What?

A lucrative new media-rights contract could rectify problems of the past, but the future of March Madness media rights is anyone’s guess.
Mar 16, 2024; Washington, D.C., USA; North Carolina State Wolfpack forward DJ Burns Jr. (30) cuts the net after defeating the North Carolina Tar Heels for the ACC Conference Championship at Capital One Arena.
April 6, 2024

How Two College Seniors Helped DJ Burns Cash In on a Final Four Run

Two college seniors are facilitating deals for NC State’s big man.
Mar 31, 2024; Portland, OR, USA; NCAA officials measure the three point line while coaches from the Texas Longhorns and NC State Wolfpack watch with referees in the finals of the Portland Regional of the NCAA Tournament at the Moda Center center.
April 1, 2024

NCAA Has No One to Blame for Latest Women’s March Madness Transgressions

NCAA is still making avoidable mistakes three years after a complete overhaul.
Nov 16, 2015; Bloomington, IN, USA; General view of the championship banners at Assembly Hall prior to the game between Austin Peay and Indiana.
March 31, 2024

How to Make It in Basketball: Become a Manager at Indiana

Inside the Hoosiers’ unglamorous, profoundly rewarding incubator for basketball’s biggest names.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Nike
Multiple - USA Careers
NBA
Multiple - USA Careers
Dunham's Sports
Multiple - USA Careers

Silver Lake to Take Endeavor Private, Ending Tough Stock Market Run

Private equity giant Silver Lake is set to acquire the remaining shares it didn’t already own.
February 7, 2024

ESPN DTC to Debut by Fall 2025, but Streaming Alliance Hastens Market Entry

Date set for stand-alone version of network, but new joint venture will beat that by a year.
Exterior of Nike Company Store
February 16, 2024

Nike to Lay Off 2% of Its Workforce in Cost-Savings Effort

The sportswear giant hinted at staff cuts in a December earnings call.
Sponsored

Rapid Returns: How Technology Is Getting You Back to Your Seat

How Oracle’s POS technology is helping fans get back to their seats faster.
January 22, 2024

They Make Sports Balls—and They Could Be Worth Almost $9 Billion

Amer Sports looks to raise as much as $1.8 billion in the public markets.
A view of a FanDuel sportsbook location.
January 18, 2024

FanDuel Strengthens U.S. Dominance Ahead of NYSE Debut

Flutter posts strong financial results as NYSE shares are set to debut Jan. 29.
The swoosh logo at Nike Eugene.
September 28, 2023

Nike Misses Revenue Wall Street’s Projections, But Company’s Stock Soar

The company offset the shortfall by exceeding expectations in earnings per share.
The PGA Tour and PIF have a self-imposed Dec. 31 deadline to finalize their golf merger.
August 7, 2023

Saudi Arabia’s PIF Aims Higher With Launch of Sports-Focused Investment Company

The PIF has launched a new company, SRJ Sports Investments.