Feb 17, 2024
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.”
Source: Front Office Sports