DraftKings is now expanding its reach past sports betting and daily fantasy sports and into the world of lottery, announcing an agreement to purchase Jackpocket, which bills itself as the leading lottery app in the United States, in a $750 million deal.

According to a release announcing the buy, DraftKings is paying 55% of the price in cash, and the other 45% in stock.

“We are very excited to enter the rapidly growing U.S. digital lottery vertical with our acquisition of Jackpocket,” Jason Robins, co-founder and CEO of DraftKings, said in the 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 currently provides digital lottery services in 16 states, Puerto Rico, and Washington, D.C. They also recently launched an online casino in New Jersey.

“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,” Peter Sullivan, CEO of Jackpocket, said in the release. “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.”

DraftKings expects the the transaction to bring in an additional $260-$340 million in revenue in 2026, leading to $60-$100 million in adjusted EBITDA. The company expects those numbers to bloom by 2028 to between $350-$450 million in revenue and up to $150 million in adjusted EBITDA.

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