Jersey founder hits jackpot as company is acquired by DraftKings for $750M

jackpot as company is acquired by DraftKings

Brooklyn-born and New Jersey-raised CEO Pete Sullivan reached an agreement to sell Jackpocket, the nation’s leading lottery app, to DraftKings for $750 million, it was announced late Thursday.

The deal requires regulatory approvals to close.

Jackpocket is the leading provider of digital lottery services in the U.S., with proprietary and highly scalable technology and a strong brand.

The first licensed third-party lottery courier app in the country (you can play the lottery on your smartphone), Jackpocket is licensed to provide service in 18 jurisdictions across the country, including New Jersey.

The proposed transaction will enable DraftKings to access and grow into the massive U.S. lottery industry, but more importantly strengthen its position in sportsbook and iGaming through higher customer lifetime value, according to DraftKings officials.

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

“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.”

Sullivan got the idea for Jackpocket years ago in New Jersey, when he would see his father have to go to various convenience stores to play the lottery. Years later, he used his background in finance and technology to solve this problem by creating Jackpocket.

Sullivan feels a partnership with DraftKings is the next step in growth.

“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. “DraftKings’ broad footprint and exceptional mobile products present an opportunity to meaningfully expand the digital lottery vertical, and we could not be more excited to come together with DraftKings.”