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DraftKings

DraftKings Reaches Agreement to Acquire Jackpocket for $750 Million

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DraftKings Inc. announced that it has reached an agreement to acquire Jackpocket, the leading lottery app* in the United States, for total consideration of approximately $750 million, with approximately 55 percent of the consideration payable in cash funded from the Company’s balance sheet with no capital raise required and approximately 45 percent of the consideration payable in the Company’s Class A common stock, subject to customary purchase price adjustments and the collar mechanism described below (the “Proposed Transaction”).

Jackpocket is the leading provider of digital lottery services in the U.S. with proprietary and highly-scalable technology, a strong brand, and an outstanding founder-led management team. 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 – based on demonstrated cross-sell capabilities – and an enhanced customer acquisition engine.

“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 OSB and iGaming.”

“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,” said Peter Sullivan, CEO of Jackpocket. “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.”

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European Gaming Congress 2024 (Warsaw, Poland)

DraftKings

EveryMatrix live in Ontario with DraftKings

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DraftKings, one of North America’s leading operators, has gone live with EveryMatrix casino content in Ontario, Canada – the tier-1 supplier’s latest entry into a large iGaming jurisdiction in North America.

EveryMatrix will provide DraftKings customers in Canada’s largest province with games from its in-house studios including Armadillo Studios via seamless integration with SlotMatrix, its proprietary B2B aggregation and content provision offering.

The Ontario launch is the second North American territory to see EveryMatrix content go live with DraftKings, following New Jersey in June last year.

The leading iGaming technology provider is the industry’s largest content aggregator and has secured commercial agreements with several tier-1 operators in the US through SlotMatrix.

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European Gaming Congress 2024 (Warsaw, Poland)

EveryMatrix has more than 300 global customers with North American licences in Ontario, New Jersey, Michigan, West Virginia, Connecticut and Pennsylvania.

Erik Nyman, President, EveryMatrix Americas, said: EveryMatrix is thrilled to expand our partnership with DraftKings into Canada and the largest province, Ontario.

“This means we now reach half of the country’s population and marks yet another important milestone for the company. DraftKings is one of the largest iGaming and sportsbook operators in North America and we are one step closer to full market penetration with them.”

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ClickOut Media

Does DraftKings’ customer surcharge plan constitute an abuse of power?

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“DraftKings passing on the surcharge to its customers feels like an abuse of power in markets where customers are not always spoiled for choice,” said Neil Roarty, head of North American publishing at ClickOut Media. 

“Regulation of sports betting was supposed to provide more customer protection. However, if the brand with the highest market share can just whack a charge on players because it doesn’t want to pay more in taxes, then the whole concept of legal sports betting becomes questionable. 

“Would this happen in any other industry? A market leader should not be able to hike up prices with customers having no option but to pay it. Another option of course is that they simply choose to play elsewhere.” 

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American Gaming Association

DraftKings Plans to Launch Mobile Sports Betting in Washington D.C.

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DraftKings Inc. has announced its intention to launch its top-rated online sportsbook in Washington D.C., pending licensure and regulatory approvals. The expected arrival into the nation’s capital follows a market access agreement with D.C. United, which would pave the way for the digital sports entertainment and gaming company to operate in The District of Columbia. Once live, Washington D.C. would become the 29th jurisdiction in North America in which the DraftKings Sportsbook operates.

“It has been incredible to see legalized sports betting grow rapidly over the past six years, and with plans to launch our online sportsbook in D.C., DraftKings looks forward to expanding its presence in more than half the country. We would like to thank the D.C. Council for creating a path to bring DraftKings’ top-rated sportsbook to the nation’s capital. Together with D.C. United, we look forward to delivering fans a best-in-class experience through our customer-friendly product,” said Matt Kalish, President, DraftKings North America.

Washington D.C. is home to professional sports teams across the MLB, MLS, NBA, WNBA, NWSL and NHL and soon, eligible sports fans will have access to a wide variety of betting markets and key offerings such as same-game parlays, in-game betting, special odds boosts and more on DraftKings online sportsbook.

“With the D.C. Council’s recent decision to expand the world of sports betting in D.C., we look forward to working with DraftKings to introduce their online sportsbook as another way for D.C. residents to bet in the city. Our goal is to always make every fan experience seamless, and this platform will help us to deliver on that promise,” said Danita Johnson, President of Business Operations for D.C. United.

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Responsible gaming is one of DraftKings’ top priorities and a core part of the company’s mission. As a safe, regulated sportsbook, DraftKings is committed to offering robust consumer protection standards. Available tools and resources include deposit and time limits, access to responsible gaming resource materials, cool off and self-exclusion features and “My Stat Sheet” – an innovative feature to track personalized gaming statistics and insights.

As an active member of the American Gaming Association (AGA), DraftKings is committed to promoting the AGA’s “Have A Game Plan. Bet Responsibly” public service campaign, which educates customers on responsible gaming best practices, such as establishing and adhering to a budget and only engaging with legal, regulated operators. DraftKings is committed to providing a safe and fun gaming environment that all customers can enjoy responsibly in states where sports betting is legal. A core part of the company’s mission, DraftKings has robust consumer protection standards on its platforms and provides consumers with responsible gaming tools and resources while leveraging advanced technology to detect signs of potentially problematic behavior.

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