International Expansion of Jackpocket’s Lottery Model

The acquisition of lottery courier service, Jackpocket by DraftKings, for $750 million has reshaped the lottery marketplace and brought unique strategic advantages to DraftKings.

Jackpocket’s product-market fit, rapid growth, 80% lower acquisition costs compared to DraftKings, and 50% crossover in players made it an astute acquisition – see “Convergence is the Future of Gaming

Key insights from this acquisition indicate that:

  1. Lottery players bet on sports
  2. Sports bettors play lottery
  3. Acquiring lottery players is significantly cheaper than acquiring sports bettors

The collaboration with Jackpocket presents substantial up-selling opportunities for DraftKings. By acquiring players through lottery inexpensively and up-selling sports betting, DraftKings can significantly increase its revenue per user and lifetime value, boosting its financial performance.

At Betfusions (formerly, Win Millions Lotto), we have already developed the same courier technology to purchase tickets for various lotteries worldwide when jackpot insurance costs are prohibitive. We can easily adapt it to be consumer-facing, where tickets are scanned and sent directly to players.

Jackpocket has proven the success of the courier lottery model, and DraftKings has validated the opportunity. Players feel comfortable knowing that:

  • They own official tickets
  • They can view scanned copies of their tickets online
  • Winnings will be paid out by the official lottery operator, which is the country’s government

The same can be said about the lottery courier model in Australia, where the main player, The Lottery Office, is gaining popularity and market share – see below.

A huge opportunity exists to promote a one-stop solution where players can bet on sports and horse racing, be entertained trying to win on slots or playing blackjack and buy tickets to the world’s biggest lotteries on one site with one account, login, and password. Betfusions’ diversified revenue streams across multiple verticals enables it to significantly reduce the high cost of lottery tickets currently charged by courier services.

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