Jackpocket founder and former CEO Peter Sullivan has announced his departure from DraftKings, two years after the operator snapped up the lottery courier for $750m.
Sullivan founded the New York-based business in 2013 and served as its CEO until the DraftKings acquisition.
Upon completion of the deal, Sullivan transitioned to a new role as senior vice-president of lottery at DraftKings.
Sullivan said that while he will vacate his “day-to-day operating role”, he will continue to support the Jackpocket arm in an advisory capacity.
DraftKings agreed to acquire Jackpocket in February, before completing the deal in May 2024.
The operator viewed the acquisition as a means by which to lower customer acquisition costs and open up a new revenue stream for the online sports betting and igaming-focused firm.
In fact, bosses said that Jackpocket’s customer acquisition costs were around 80% lower than what it costs DraftKings to acquire users, but that there was also “significant customer overlap”.
Jackpocket, alongside running lottery courier operations, also has an online casino offering in New Jersey.
Jackpocket’s lottery courier product is live in 15 US states, DC and Puerto Rico.
The product allows users to purchase lottery tickets via their app before a courier buys physical tickets from a retail point-of-service. The slips are stored at a secure facility, while users are informed via the app if they have won a prize.
Sullivan said: “What started in 2013 as an idea to modernise how people participate in the lottery became a journey beyond anything I could have imagined.
“Along the way, we built an amazing team, navigated countless challenges, expanded across the country, helped create millions of lottery winners and ultimately joined forces with DraftKings to accelerate our vision on an even larger scale.
“I’m incredibly proud of what we’ve accomplished and deeply grateful to the employees, partners, investors, regulators, retailers and customers who believed in us along the way.
“Most importantly, I’m thankful for the teammates who dedicated years of their lives to building something special together.
“As I transition into an advisory capacity, I’m excited to watch the next chapter unfold. I remain extremely bullish on the future of lottery at DraftKings and the opportunity for its continued growth.
“Personally, I’m looking forward to spending more time with my family, pursuing new ventures and exploring other opportunities. While I’m excited for what’s ahead, I’ll always be proud of what we built and the impact we’ve made.”
Other lottery couriers operating in various US states include Lotto.com, Jackpot.com and TheLotter.
Arnold Ash is EGR’s executive recruitment partner. It supports ambitious organisations to identify and attract industry leading executive talent. Find out more here.
The post Jackpocket founder announces departure from DraftKings first appeared on EGR Intel.
Peter Sullivan says he is stepping away from day-to-day running of the lottery courier some 26 months after DraftKings acquired the business for $750m
The post Jackpocket founder announces departure from DraftKings first appeared on EGR Intel.