Convergence is the Future of Gaming

Imagine a world where the five most popular gaming verticals – lottery, games, casino, horse racing and sports betting – converge seamlessly under one roof, with one login, one password and one account, in local language and currency.

Whether you dream big playing your favourite lotteries, experience instant thrills through scratch cards, instant wins or crash games, immerse yourself in slots and live dealer table games, bet on your team during English Premier League, NBA or IPL seasons, or have a bet on the Derby or Grand National, wouldn’t it be amazing to do it all on one site.

DraftKings recognised this and acquired Jackpocket for $750 million, completing its portfolio with the addition of lottery. This strategic move catapulted DraftKings to the forefront of the US gaming market, as validated by the stock market’s confidence in its future.

CEO Jason Robbins articulated the rationale behind this acquisition, highlighting Jackpocket’s significantly lower customer acquisition cost (CAC) compared to DraftKings and the promising overlap in customer bases, indicating higher lifetime value (LTV) prospects.

“Jackpocket’s ~80% lower CAC vs. DraftKings will drive more efficient marketing”

“Diligence revealed significant customer overlap between Jackpocket and DraftKings with overlapping customers having 50%+ higher LTV profiles”

Source: Draftkings Q4 Earnings Presentation, February 2024 (pp. 9)

Italy’s national lottery operator, Lottomatica, has made its own acquisition for the same purpose, buying sports betting operator, SKS365 for €639 million in April, 2024.

Eilers & Krejcik’s podcast episode titled “Is Jackpocket Already Proving The Cross-Sell Model?” confirms Jackpocket’s success in its lottery to casino cross-sell strategy.

https://open.spotify.com/episode/0T22eHggt8TPUs4NoEP2Mh?si=YgxXxKoHTUafbq5BPsbdTw

Cross-selling is poised to become a cornerstone of DraftKings’ strategy – leveraging lottery to attract customers and then cross-selling sports betting. However, the efficacy of cross-selling hinges on offering a converged product.

While DraftKings leads the convergence trend in the US, Canada has been ahead of the curve for years with provinces such as OLG in Ontario, BCLC in British Columbia, and Loto Quebec already offering converged products.

At Betfusions (formerly, Win Millions Lotto), we are adopting this successful model and aiming to introduce it to the world’s largest and most promising pre-regulated markets.

In summary, convergence is not just a trend; it’s the cornerstone of the future of gaming.

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