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  "documentTitle": "DraftKings | Results Presentation Deck | 23 slides",
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  "authorName": "DraftKings",
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  "presentationDate": "2024-02-01 00:00:00",
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      "text": "(1) H2 Gambling Capital estimates FY 2023 U.S. lottery gross ticket sales were $108B and will grow to $138B in FY 2028. Lottery gross ticket sales includes draw-based, instant, and other lottery games.\n(2) Jackpocket was downloaded 9x more than its closest competitor in the digital lottery courier category in FY 2023, according to Sensor Tower estimates.\n(3) Overlapping customers is defined as customers who have had a paid activity on both Jackpocket and DraftKings OSB and/or iGaming in FY 2023, while non-overlapping customers are defined as DraftKings OSB and/or iGaming customers who have not engaged with Jackpocket.\n(4) \"LTV\" represents customer lifetime value. DraftKings defines customer lifetime value as the gross profit a customer generates over time divided by a discount rate (cost of capital). Overlapping customers on average generated 53% higher OSB and iGaming GGR in FY 2023 compared to DraftKings customers that did not engage with Jackpocket.\n(5) Customer acquisition cost (CAC) is defined as external marketing spend divided by new customers. DraftKings includes all external marketing spend allocated to OSB and iGaming, including national spending, team and league deals, and product-agnostic spending, and divides by new OSB and iGaming customers, without crediting for customers who were previously acquired to DFS.\n(6) Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation to its most directly comparable financial measure calculated in accordance with GAAP, net income (loss), please refer to the appendix of this presentation.",
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      "text": "1. The U.S. lottery industry is massive with $100B+ in annual ticket sales and is projected to grow at a 5% CAGR through FY 2028\n2. Jackpocket is the #1 U.S. lottery app and is expected to grow revenue 70%+ YoY in FY 2024E, ~15x faster than the broader U.S. lottery industry\n3. Diligence revealed significant customer overlap between Jackpocket and DraftKings with overlapping customers having 50%+ higher LTV profiles\n4. Jackpocket's ~80% lower CAC vs. DraftKings will drive more efficient marketing\n5. We expect the acquisition to add $60-100M and $100-150M of Adj. EBITDA in FY 2026 and FY 2028, respectively",
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      "text": "Transaction rationale",
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      "evidence": "The revenue buildup and market sizing sections provide further context on the company's growth prospects.",
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      "evidence": "The revenue buildup and market sizing sections support the acquisition's growth prospects.",
      "position": 2,
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