A $750 million deal for online sports and casino betting app DraftKings to acquire lottery app Jackpocket is expected to be finalized in the second half of the year.
Jackpocket’s New Jersey raised CEO, Pete Sullivan, a 2007 graduate of Rutgers University, agreed to sell his company in February.
Regulatory approvals necessary to finish the deal are expected to be complete in the coming months.
Under terms of the merger agreement, Jackpocket shareholders will get about $412.5 million in cash and $337.5 million in stock, the company said in a statement.
Jackpocket operates in New Jersey, Washington D.C., Puerto Rico and 15 other states. Players can buy tickets for New Jersey Lottery games such as Jersey Cash 5 and Pick 6 as well as multi-state games like Powerball and Mega Millions using the Jackpocket app on their phone.
In January, Jackpocket launched a separate casino app through a partnership with Caesars Interactive Gaming New Jersey. The first lottery platform in the U.S. to enter the online casino space, it offers games like blackjack, roulette, and slots.
DraftKings offers online sports and casino wagering in New Jersey and 25 other states. In New Jersey, it also partners with Resorts Casino & Hotel in Atlantic City.
“We are very excited to enter the rapidly growing U.S. digital lottery vertical with our acquisition of Jackpocket,” said Jason Robins, co-founder and CEO of DraftKings. “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 sports betting and iGaming.”
The specifics of how the apps will interact hasn’t been announced.
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Jeff Goldman may be reached at jeff_goldman@njadvancemedia.com.
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