DraftKings Spun $1.8B Powerball Fever Into a Marketing Jackpot… and Jim Cramer Can’t Get Enough

Pretty much everyone I’ve ever met (teachers, accountants, the guy at Jiffy Lube) secretly shares the same dream… that they're one scratch away from telling their boss to shove it. If you’ve been paying attention at all, this weekend’s Powerball sits at a meager $1.8 billion… the third-largest in U.S. history.

Now I actually did the math because I’m such a genius and get this… the odds of actually winning are 1 in 292 million. Which means you’re statistically more likely to be struck by lightning while getting eaten by a shark at the same time (source: trust me bro). 

But while people all over this beautiful country are daydreaming about the yacht they’ll never get to buy, one company has already won: DraftKings.

(Source: Tipranks)

The sportsbook is making a killing through Jackpocket, the lottery courier app it bought back in February. The idea is so straightforward it’s surprising no one scaled it earlier. Instead of waiting at the gas station behind someone buying ten packs of Marlboros and a stack of scratch-offs, you can just pick your numbers in the app, pay the 14% service fee, and let Jackpocket handle the rest.

And to say business is booming would be an understatement. Jackpocket reported a 200% sales spike last week, followed by another 130% surge in a single day as Powerball fever hit full tilt. According to reports, more than 15 million tickets have been sold on the app during this jackpot run alone.

At $2 a ticket, that’s about $30 million in sales, and with Jackpocket taking a 14% cut, DraftKings hauled in roughly $4.2 million in service fees. It’s not enough to move the needle for a $20B company, but the real prize here is customer acquisition. If they can hook people on Powerball, maybe they’ll stick around for same-game parlays and increased odds promos.

(Source: Insider Monkey)

That’s exactly why DraftKings bought Jackpocket in the first place. Management projected the deal would add $260M-$340M in revenue by 2026, and up to $450M by 2028. Again, lottery tickets aren’t the endgame… they’re the gateway drug.

And the market loves it. DKNG is up 28% this year, analysts are throwing Strong Buys on it one after another, and Jim Cramer’s out here hyping their promos like he’s getting DKNG stock options in his Christmas bonus. Pair that hype with a record-breaking $1.5B in quarterly revenue and $301M in operating income, and Powerball mania starts looking like the cherry on top of a sundae Wall Street was already devouring. So if you’re buying a Powerball ticket this weekend, you’re technically a DraftKings shareholder now. You just don’t get the upside.

At the time of publishing this article, Stocks.News doesn’t hold positions in companies mentioned in the article.