Boosted by recent better-than-expected financial performance, US sportsbook and iGaming leader DraftKings has upped its fiscal guidance for 2024 and made a bold move to buy lottery reseller and sweepstake operator Jackpocket for US$750 million (£595.13m).

In Q4 2023, the Massachusetts-based fantasy sports kings’ revenue climbed to US$1.231 billion (£976m), a 40 percent increase year-on-year.

And with growth continuing into this early-stage year, DraftKings has now updated and increased its Revenue and Adjusted EBITDA forecasts for 2024.

The company–already active in 24 US states and Canada’s Ontario province, and poised to launch in North Carolina and US territory Puerto Rico–now anticipates revenue to be between US$4.65 billion (£3.68bn) and US$4.9 billion (£3.88bn).

Adjusted EBITDA expectations have also been revised upwards to a range of US$410 million (£325.33m) to US$510 million (£404.69m).

DraftKings’ deal to buy Jackpocket, a business, founded in 2013, which offers both lottery resell and sweepstakes in 18 states, as well as recently launched iGaming operations in New Jersey, is expected to close in the second half of this year.


“We are very excited to enter the rapidly growing US digital lottery vertical with our acquisition of Jackpocket,” said DraftKings Co-founder and CEO Jason Robins.

“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 OSB and iGaming.”

DraftKings said its sterling 2023 performance was driven by effective customer engagement strategies, acquisition of new customers, the expansion of its sportsbook offerings into additional markets, and innovations that led to a more diversified betting mix and higher sportsbook hold-percentage.

In the last quarter of 2023, the firm’s Monthly Unique Payers (MUP) grew by 37 percent, year-on-year, to an average of 3.5 million people.

Average MUP revenue rose to US$116 (£92), up six percent from the previous year.

“DraftKings ended 2023 with excellent performance across customer acquisition, retention and engagement as well as structural sportsbook hold percentage despite the worst stretch of sport outcomes we have seen as a public company in the fourth quarter,” affirmed Robins (pictured left).

“Looking ahead to 2024 and beyond, our focus remains on disciplined execution against our core value drivers, an unwavering commitment to customer centricity, and fulfilling our product roadmap to consistently differentiate ourselves competitively.”

Added DraftKings Chief Financial Officer Jason Park: “In 2023 we delivered on our commitments to generate outstanding revenue growth and drive significant operating efficiencies.


“We expect 2024 to mark our first full year of positive Adjusted EBITDA, demonstrating clear progress toward the goals we presented at our November 2023 Investor Day.”

For many US gambling industry observers DraftKings’ proposed acquisition of Jackpocket is seen as a “slick” workaround and clear attempt to leverage iLottery to promote sports betting and iGaming.

But from a regulatory perspective the move is not guaranteed to find universal acceptance — and may face fierce blow-back from anti-gaming activists.

On its current market penetration-with DraftKings available to around 50 percent of the addressable gambling market in the US and 40 percent in Canada–, the company expects its acquisition to deliver some US$340 million (£269.79m) in incremental value, and boost Adjusted EBITDA by around US$100 million (£79.35m) within two-years.

Jackpocket CEO Peter Sullivan is certainly a fan.

“Together with DraftKings, we will be able to bring tremendous value to our customer base as we advance our mission to create a more convenient, fun and responsible way to take part in the lottery,” he said, metaphorically waving his winning ticket.

Undoubtedly DraftKings have stolen a march on their great rivals, FanDuel.

We await, with keen interest, the Flutter response.

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