Jackpocket is already establishing itself as one of the major players for online lottery in the United States.
However, it recently dipped its toe into the online casino business, as well. New Jersey became the first home of a Jackpocket iGaming product last November.
The online casino app Jackpocket is seeing some positive growth early in the Garden State. What could that mean for its lottery courier service product and partnership with DraftKings?
Is the app for online lottery draw games creating better cross-sell opportunities with its online casino?
Jackpocket sees big iGaming growth in February
Through a partnership with Caesars Interactive Entertainment and Harrah’s Atlantic City, Jackpocket launched an online casino in New Jersey at the end of November.
While the new iGaming platform isn’t generating great revenue as of yet, it is seeing a lot of growth in recent months.
According to the NJ Division of Gaming Enforcement, Jackpocket accumulated $802,840 in gross gaming revenue for its online casino in February. That was a 282% increase from the $210,039 it did in January. In December, Jackpocket had just $151,058 in GGR.
February’s peak month for Jackpocket allowed it to best the likes of Stardust, Harrah’s, bet365, PokerStars, and other iGaming brands in New Jersey. This is according to Eilers & Krejcik Gaming.
While the revenue number is a nice boost for Jackpocket, it still accounted for less than 0.5% of the state’s market share that month ($182.3 million).
Lottery-to-casino cross-sell has unique value
Jackpocket put out a soft launch with its online casino in New Jersey, but amped up the promotional effort to start 2024.
EKG indicated that Jackpocket added a casino button to its lottery courier app. It also debuted push notifications, banners, and bonuses for its players in New Jersey.
The Garden State is one of 18 to offer the lottery courier service.
It also hasn’t hurt that the US has seen massive jackpots to start 2024. That includes a $1.3 billion Powerball jackpot this past weekend. EKG reports that 70% of Jackpocket casino sign-ups in New Jersey were cross-sells from the lottery service.
Should New Jersey continue to see growth, Jackpocket could look to expand its casino business into other states where it offers its lottery product.
DraftKings hoping to capitalize on Jackpocket cross-sell
The encouraging cross-sell promotional numbers are a big reason behind the $750 million price tag that DraftKings paid to acquire Jackpocket in February.
DraftKings stated that customer acquisition cost for Jackpocket is 80% lower than what it took for its own database.
Zero Latency: An Eilers & Krejcik Gaming Podcast covered this topic in an episode last February with Tekkorp Capital CEO Robin Chhabra:
“Cost of acquisition for lottery can be very low, especially during times of huge rollover jackpots. As we know, casino customers tend to have the highest lifetime values. So, Jackpocket could become a low-cost acquisition channel for the highest value customers.”
The cross-promotion of the female customer is what is particularly appealing about Jackpocket. Historical data tells us that cross-promotion from sports betting to casino isn’t high for female gamblers.
That could be something that produces much higher results from the lottery-to-casino promo. Chhabra noted that adding a lottery product is something other top online gambling operators may look to do after this DraftKings move:
“Once you own the customer, you want to offer them as many products as possible. That obviously creates a lot of leverage for the operator.”
DraftKings paid 10x what Jackpocket made in 2023 to acquire it. However, that customer base of 18 states could be quite valuable if more add online casinos in the future.
Photo by PlayiLottery
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