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DraftKings released its Q4 earnings report and announced its acquisition of Jackpocket Inc. during a slower sports week.
DraftKings released its Q4 earnings report and announced its acquisition of Jackpocket Inc. during a slower sports week.

It may have been a quiet week in sports with the Super Bowl concluding the NFL season, but DraftKings still managed to make headlines amid the slow period.

DraftKings, one of our best sports betting sites, both released its Q4 earnings report and acquired “the leading lottery app in the United States,” Jackpocket Inc.

The acquisition should continue to help DraftKings close the gap on FanDuel as the top best sports betting app for North American bettors.

Financials first

According to a Q4 DraftKings earnings report that was released Thursday, DraftKings had a good fourth quarter of its fiscal year. It could have been better if not for a relatively underwhelming win rate, as the public had its way with the best sportsbooks during a few weeks of the NFL season.

The three-month period included a stretch in November in which the best live betting sites took a beating from the wagering public in the North American market. That stretch cost DraftKings an estimated $175 million.

DraftKings is reporting $1.23 billion in revenue for Q4, a year-over-year spike of 44% but just short of industry projections of $1.24 billion. Through it all, the figures released Thursday have to be deemed a success.

“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,” said Jason Robins, DraftKings’ Chief Executive Officer and co-founder.

Full-year revenue for DraftKings came in at $3.67 billion, an impressive 63.8% year-over-year increase from 2022.

Overall, 2023 sports betting and iGaming experienced a 37% spike from the year prior. The company ended the year with 3.5 million monthly unique players, beating analyst estimates of 3.3 million.

Continued growth expected in 2024

DraftKings' 2023 financials are likely just a sign of things to come for the iconic site with some of the best sportsbook promos. Additionally, 2024 is expected to be better, highlighted by a projection of its first positive EBITDA year (earnings before interest, taxes, depreciation, and amortization) ever, and even more users signing up via the DraftKings promo code.

DraftKings will be in on every new prospective market in the North American scene in an attempt to grow past its current 24-state presence. A focus on iGaming, which DraftKings has a presence in all five U.S. jurisdictions could also help the company's bottom line in 2024.

“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,” Robins said.

Jackpocket Inc. acquisition

DraftKings on Thursday also announced it is branching out and expanding its offerings in the growing U.S. gambling and mobile casino industry. It was announced that the company is purchasing Jackpocket Inc., which is described as “the leading lottery app in the United States.”

The deal is worth a reported $750 million. It allows DraftKings to expand its gambling portfolio and also leverage its standing in the industry to cross-promote its sports complete platform.

“We are very excited to enter the rapidly growing U.S. digital lottery vertical with our acquisition of Jackpocket,” Robins said in a press release. “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.”

Jackpocket has a vast presence in the U.S. market, including some states in which DraftKings has yet to gain market access.

The Jackpocket app is available as part of Arizona sports betting apps, Arkansas sports bettingColorado sports betting, Idaho, Massachusetts sports betting appsMinnesota sports betting, Montana, Nebraska, New Hampshire sports betting, New Jersey best sports betting apps, New Mexico, New York best sports betting apps, Ohio best sports betting appsOregon sports bettingPuerto Rico sports bettingTexas sports bettingDC sports betting, and West Virginia sports betting.

Jackpocket gives DraftKings a leg up in any new prospective markets that may be ready to legalize in the future.