• Loading stock data...
Friday, July 11, 2025

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

The Florida State Seminoles hosted the Florida Gators at Doak Campbell Stadium on Saturday, Nov. 30, 2024.

Athletic Departments Express Renewed Interest in PE in Wake of House Settlement

Schools now have more expenses—and are looking for creative solutions.
Caster Semenya

Caster Semenya’s Legal Win Could Reopen Fight Against Testosterone Limits

The Olympian champion’s appeal against gender eligibility rules continues.
Gareth Bale
exclusive

Gareth Bale Group Makes New Offer for Cardiff City 

Bale tells Front Office Sports his group has made another bid.
Feb 5, 2025; New Orleans, LA, USA; NFLPA executive director Lloyd Howell during the NFLPA press conference at the Super Bowl LIX media center at the Ernest N. Morial Convention Center.

NFLPA Head Has Side Hustle With PE Firm That Can Invest in..

The NFLPA’s executive director is embroiled in multiple controversies.

Featured Today

Jun 28, 2025; Arlington, Texas, USA; Seattle Mariners catcher Cal Raleigh (29) bats during the game between the Texas Rangers and the Seattle Mariners at Globe Life Field.

The Torpedo Bat Business Is Still Going Strong: ‘Here to Stay’

Demand for the oddly shaped bats has stayed strong across the sport.
July 6, 2025

American Celebs Want to Be Sports Owners. Soccer Is Where They Start

As U.S. team prices climb, investors set their sights abroad.
July 5, 2025

Baseball’s Celebrity Row: Behind MLB’s First-Pitch Ritual

Often planned, sometimes spontaneous, the ritual throw is baseball’s celebrity row.
July 4, 2025

3,000 Hot Dogs, $20K in Prizes: Behind the Nathan’s Eating Contest

Nathan’s serves up thousands of hot dogs and $20,000 in prize money.
Jonathan Mariner

Former MLB CFO Jumps to PE, Says Teams Are Undervalued

Mariner worked in Major League Baseball for 24 years.
March 20, 2025

Nike Struggles Continue, but Signs of Turnaround Appear

The embattled company beats tepid expectations in both revenue and earnings.
James Harden
April 24, 2025

Adidas Posts Big Profits in First Quarter Without Yeezy

Profits and sales are up after selling off remaining Yeezys last year.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
Oracle Park
March 18, 2025

S.F. Giants Selling Stake to Private Equity to Pay for Facility Upgrades

The team said the cash would not be used to grow payroll.
Aug 11, 2024; Paris, France; Medals are carried out on Louis Vuitton trays after the women's volleyball gold medal match during the Paris 2024 Olympic Summer Games at South Paris Arena
February 16, 2025

LVMH’s New Push: World’s Most Powerful Luxury Group Is Coming for Sports

LVMH is making long-term deals—and they’re not done.
February 14, 2025

DraftKings Turns First Full-Year Profit, Stock Up 47% in 2025

The company’s sports betting business continues to grow despite headwinds.
Billie Jean King
February 13, 2025

Billie Jean King: ‘Billionaires, Not Millionaires’ Are Fueling Women’s Sports Boom

Billie Jean King wants more women involved in team ownership, too.