DraftKings Merges US Lottery App Jackpocket User Accounts

DraftKings is poised to enhance user experience by merging its user accounts with Jackpocket, the lottery app it acquired last year. This strategic integration seeks to streamline operations, allowing users to operate under a single login for both platforms.

In a communication to users, DraftKings stated, “Jackpocket is part of the DraftKings family. In a few weeks, we’ll be merging your Jackpocket and DraftKings accounts so that you have one streamlined experience.”

Moreover, the company emphasized the application of deposit limits. Users currently holding limits on either platform will find that the more restrictive limit is enforced post-merger. This transparency ensures responsible gaming practices remain a priority.

### DraftKings’ Expansion into Lottery Gaming

The $750 million acquisition of Jackpocket marks a significant milestone in DraftKings’ expansion within the online gambling sector. Jackpocket stands out as the first licensed third-party lottery app in the U.S. and continues to lead the market, having been downloaded nine times more than competitors within 2023. With availability across 18 states, Jackpocket serves a vast customer base of 6 million, including 1.8 million active users.

At the time of the acquisition, DraftKings underscored its aim, stating, “We believe this transaction will enable us to safely and responsibly expand the lottery category, generating necessary revenue for state-funded programs.”

Despite facing opposition in certain states, particularly Texas—where a scandal surrounding third-party lottery sales led to legal restrictions—DraftKings has managed to adapt. The company temporarily suspended Jackpocket operations in Texas and New Mexico due to these legislative changes. Additionally, Connecticut is weighing a bill to restrict third-party ticket sales, albeit Jackpocket does not operate in the state.

Despite these challenges, Jackpocket has experienced remarkable growth. In 2024, revenue surged by 70%, significantly surpassing industry averages and contributing to DraftKings’ 20% revenue increase reported for Q1. The company’s Monthly Unique Payers (MUPs) rose to 4.3 million, a 28% year-over-year increase. However, the average revenue per MUP declined by 5% to $108, indicating that lottery players typically generate less revenue compared to sports or casino bettors.

### Future Plans for DraftKings

In addition to the acquisition of Jackpocket, DraftKings completed the purchase of Simplebet in December, a company specializing in automated micro-betting solutions. This acquisition enhances DraftKings’ in-game wagering capabilities, positioning it strongly within emerging betting trends.

During the Q1 earnings call, CEO Jason Robins highlighted the company’s exploration of prediction markets as a potential growth avenue. Furthermore, DraftKings remains committed to advocating for the legalization of sports betting across the U.S., actively lobbying in states like Texas and California.

The acquisition of Jackpocket provided DraftKings a foothold in Texas, making the state’s recent prohibitions on lottery couriers particularly challenging. However, a legal challenge initiated by Lotto.com has led to a temporary hold on the ban, with a court hearing forthcoming to address the future of third-party lottery sales within the state.

### Conclusion

DraftKings is strategically positioning itself as a formidable player in both the online gambling and lottery sectors. By integrating its platforms and responding to legislative challenges, the company aims to navigate the complex landscape of gambling in the United States while providing enhanced user experiences and revenue opportunities. In an industry characterized by rapid change, prudent expansions and adaptations will remain crucial for sustained success.