DraftKings (NASDAQ: DKNG), America’s biggest online sports betting app, has struck a deal to buy Jackpocket, a lottery ticket app. DraftKings will pay $750mn– $412mn in cash and $338mn in shares.

• Jackpocket is a popular app for ordering lottery tickets. It operates in 16 U.S. states, Washington D.C. and Puerto Rico.

Amid tough competition in the online sports betting market, DraftKings sees lottery games as a fitting market to expand its business. The acquisition will allow DraftKings “access and grow into the massive U.S. lottery industry,” the company said in a statement. The deal will also give DraftKings more cross-selling opportunities and increase customer lifetime value, it said.

New York City-based Jackpocket was founded in 2013. The company has raised $200mn in venture funding, with investors including Mark Cuban, minority owner of basketball team Dallas Mavericks, and David Blitzer, co-owner of basketball team Philadelphia 76ers and ice hockey franchise New Jersey Devils.

• Jackpocket was valued at $620mn from its last funding round.

DraftKings has dominated America’s online sports betting industry for several years but faces growing competition from the likes of FanDuel and BetMGM. The industry has boomed since a 2018 Supreme Court ruling overturned a previous federal ban on commercial sports betting in most states.

DraftKings expects the acquisition to close in the second half of 2024. The company has a current market value of $21bn.

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