Jason Robins: Sure. I mean, as you know, our relationship with ESPN ended late last year, so that is certainly one. But I wouldn’t say there’s like any one thing. We’re constantly optimizing it out. And actually, most of our spend is not committed. Most of our spend is done through buying that we can pull in and out of at any various points of time. So there’s a ton of different levers that we can pull as we think about funding different agreements. And right now, I think given sort of the pace and cadence of what we expect state launches to be in 2024 barring some big surprise. I don’t think you’re going to see an increase in marketing this year. It’s going to be much more of a focus on deploying our dollars much more effectively. And I think Barstool is a great example of that.
Jordan Bender: Great. And then on the follow-up on Jackpocket, with CAC going down and LTVs going up, does the acquisition help your margin targets long term just for the core business, I think it’s around 30% still. Like should we expect any incremental lift through this acquisition?
Jason Robins: It’s a great question. At this point, we haven’t dug in as much on that, but I think it’s certainly something that you could see. I think that what we get with Jackpocket is the ability to acquire a lot of customers at a fraction. It’s about 10% to 15% of our current customer acquisition costs. And that’s something that, obviously, will provide a lot of levers for being able to optimize margin over the long run, assuming that we can continue to do that, which I have no reason to believe we can. And I think on the other side of it, being able to cross-sell, it will provide some revenue lift. We don’t view this necessarily. It’s more like DFS, right? DFS is a nice little product, makes money for us. But it’s not something that is going to drive the massive top line growth.
That’s really the OSB and iGaming, and it’s more of a vehicle to be able to continue to acquire customers and engage customers in states that don’t have that yet. And I think Jackpocket, much like DFS, will do the same thing. And also, I think in states that do have OSB and iGaming, it will provide us another vehicle to acquire cheaply. And one of the cool things, I think, is if you look at sort of where a lot of customer acquisition happens now, it’s during these big moments, whether that’s the Super Bowl or March Madness coming up or any of those things. It’s those big tentpole moments. And what Jackpocket does is, it creates more of those big mass, cheap customer acquisition opportunities during the year. And it could be any time, right?
It could be the middle of August when there’s suddenly a $1 billion jackpot and we’re the only ones who are able to actually acquire in mass right before the NFL season starts. So it’s those types of advantages, I think, that you’re going to see really pay off over time.
Jordan Bender: Great. Thanks, Jason.
Operator: Thank you. Our next question comes from Jed Kelly with Oppenheimer & Company. Your line is open.
Jed Kelly: Hey, great, great. Thanks for taking my question. Has your structural holds improve, theoretically, you’re going to be able to promote at a higher incremental gross dollar. So can you talk about what that does for retention? And then my follow-up is, we’re seeing these new streaming services start to pop up. Can you talk about where the category leading gaming companies are going to be in terms of in this new streaming wave and sort of helping around the distribution. Thanks.
Jason Robins: Great question. So I think on the first one, it gives you the ability to do that. It doesn’t mean we will. I think for us right now, we feel there’s a lot of room to just continue to drive engagement through product and customer service and other things. But certainly having a little bit more cushion to be able to find other new sorts of promotions that works is another advantage. And doesn’t necessarily mean that, that’s going to be something we’re looking to do. But I do think it provides an ability to do so, which is certainly an advantage over time. And then on the streaming side, I think it’s early to say. There’s a lot of moving parts right now. And at the same time, we know, obviously, that there’s a lot of disruption going on in sports media.
Obviously, we’ve seen a ton of disruption and have seen kind of how the evolution of non-sports media and sports is still very much right in the thick of the evolution that’s occurring and it will be interesting to see how it plays out and no doubt there’ll be opportunities created, and we’re always looking for new partners and interesting ways that we can take advantage of any disruption happening in an adjacent market to us.
Jed Kelly: Thank you.
Operator: Thank you. Our next question comes from Brandt Montour with Barclays. Your line is open.
Brandt Montour: Hey, good morning, everybody. Thanks for taking my question. So the first one, another one on Jackpocket. I’m just thinking about the non-overlap portion of the database. I mean I think we think about lottery and think of sort of a very wide diversified range of demographic and income levels. And I’m just curious if you’ve done any work on the nonoverlapping piece, give us a sense on who those folks are. Is it older people? Is it men or women. And is that a richer cross-sell opportunity for iGaming or OSB in your mind? And how do you compare that?
Jason Robins: Yes, great questions. I mean, so we did a ton of work on the overall customer base and also on the general lottery market. And what we find is that, the people that are buying lottery tickets on Jackpocket, they’re using mobile devices to do so. They’re younger. They’re a more tech-savvy customer, it’s a different demographic, I think, than the average lottery customer, and that’s part of why it’s growing the market, which is great. So similar to kind of the online better versus the retail better, it’s just — it’s a different person that’s willing and also that has an iPhone and that sort of thing. And I think really, that’s kind of what the appeal is, is that, this is a disruptive new thing in a market that really — the customer wants this, right?
