Jumbo expands prize draw reach into US with Dream Giveaway

Jumbo Interactive has struck an agreement to acquire Dream Giveaway USA, marking its entrance into the US prize draw market.

Australia-based Jumbo will pay AU$57.8 million (US$37.6 million) in upfront cash to acquire Dream Giveaway. This will be funded through a combination of cash on hand and an existing debt facility.

A B2C-facing business, Dream Giveaway specialises in higher-value, automotive-themed giveaways, operating under a long-standing charitable donation model.

Jumbo said the deal represents an “important” step within its growth strategy, expanding its international footprint into the US. It will establish a B2C presence for the operator in the US market for the first time.

Should the deal complete as expected, the current Dream Giveaway management team will remain in place. Retention arrangements have also been implemented to ensure operational continuity, Jumbo added.

“The acquisition provides us with an entry point into the US prize draw market via a well-established and profitable operator with a consistent track record of performance,” Jumbo managing director, CEO and founder, Mike Veverka, said. “We can accelerate the business with its software platform and 25 years of digital marketing expertise.”

Dream Giveaway CEO Ryan Maturski added: “Dream Giveaway has successfully grown over the past seven years into a leading brand in the US prize draw market. Jumbo brings considerable digital expertise to help us achieve the next level of growth.”

How will the acquisition impact financial performance?

During the 12 months to 31 July 2024, Dream Giveaway posted AU$21.6 million in revenue. This was in addition to AU$7.1 million in adjusted EBITDA, while total transaction value hit AU$27.1 million.

Jumbo said the acquisition is expected to deliver low-to-mid single digit earnings per share accretion for the first 12 months post-completion. Performance will be reported separately in the group’s financial results.

Looking ahead, Jumbo has updated its outlook for the 2026 financial year to reflect the anticipated contribution from Dream Giveaway. Underlying EBITDA from the US entity is expected to range from US$2.7 million to US$3.0 million, covering a period of eight months.

This, Jumbo said, excludes an initial strategic investment of US$0.4 million to US$0.6 million, to support future growth. This includes digital marketing initiatives and preparatory activities to support transition to the Jumbo Lottery Platform.

Eyes on the prize for Jumbo

The acquisition marks Jumbo’s second deal in the prize draw sector in just a matter of weeks.

Earlier in October, Jumbo also purchased Dream Car Giveaways (DCG), a UK-facing digital prize draw competition platform This deal also marked the operator’s entrance into the UK prize draw market.

Jumbo agreed to pay AU$109.9 million (US$71.6 million) to secure ownership of the DCG business. B2C-facing brand DCG offers players the chance to win prizes, such as cars, cash, property and lifestyle products.