Jumbo Acquires Dream Giveaway for A$55.4m, Eyes US Prize Draw Market
Jumbo Interactive has acquired Dream Giveaway, a leading US digital prize draw business, marking its strategic entry into the lucrative American B2C prize market. The A$55.4 million deal leverages Dream Giveaway’s established brand and loyal customer base to accelerate Jumbo’s international growth.
- Acquisition of Dream Giveaway valued at A$55.4 million
- Entry into US B2C prize draw market with established brand
- Dream Giveaway’s profitable, donation-based prize draw model
- Funding via existing cash and upsized debt facility
- Expected low-to-mid single digit EPS accretion within 12 months
Strategic Expansion into the US Market
Jumbo Interactive Limited, a stalwart in the digital lottery sector, has taken a significant step beyond its traditional markets with the acquisition of Dream Giveaway (USA). This move, announced on 30 October 2025, represents Jumbo’s first direct foray into the US business-to-consumer (B2C) prize draw market, a sector ripe with growth potential and distinct from conventional lottery operations.
Dream Giveaway, founded in 2007 and operating under a charitable donation model, has built a trusted and profitable digital prize draw platform specialising in high-value automotive-themed giveaways. With over 17 years of operational history, the company boasts a loyal customer base and a proven track record of consistent revenue growth and stable earnings before interest, taxes, depreciation, and amortisation (EBITDA).
Financials and Funding Structure
The acquisition was completed through Jumbo’s US subsidiary, Jumbo Interactive USA, Inc., at an enterprise value of A$55.4 million (US$36.0 million). This valuation reflects a multiple of approximately 7.8 times Dream Giveaway’s adjusted EBITDA of US$4.6 million for the trailing 12 months to July 2025. Funding was secured through a combination of A$20.9 million in existing cash and a A$36.9 million debt drawdown, facilitated by an upsized and amended debt facility with ANZ Bank, providing Jumbo with enhanced financial flexibility for its growth ambitions.
Jumbo anticipates the acquisition will contribute low-to-mid single digit earnings per share (EPS) accretion within the first year post-completion, signalling a positive immediate impact on shareholder value. The company also highlighted that Dream Giveaway’s financial performance will be reported separately in Jumbo’s group results, ensuring transparency for investors.
Integration and Growth Prospects
Maintaining operational continuity, Dream Giveaway’s existing management team will remain in place, with the CEO reporting directly to Jumbo’s Managing Director and CEO, Mike Veverka. Retention arrangements for key personnel have been implemented to safeguard business momentum. Jumbo plans a phased integration approach, balancing operational autonomy with strategic oversight, and aims to leverage its proprietary technology platform, marketing expertise, and operational capabilities to unlock further growth opportunities.
The acquisition aligns closely with Jumbo’s broader strategy to diversify revenue streams and expand its international footprint. Dream Giveaway’s donation-based prize draw model operates within a clearly defined regulatory environment distinct from casino-style sweepstakes, mitigating regulatory risk while tapping into a growing consumer preference for engaging, digital prize experiences.
Market Context and Strategic Rationale
The US prize draw market, with a population of approximately 350 million, offers Jumbo a substantial addressable market compared to its existing operations in Australia and the UK. Dream Giveaway’s established brand and digital presence provide a solid foundation for Jumbo to deploy its proven lottery software and data-driven marketing strategies. This acquisition not only diversifies Jumbo’s product portfolio but also positions the company to capture meaningful market share in a rapidly evolving segment.
Jumbo’s commitment to regulatory compliance and best practices is underscored by comprehensive due diligence and ongoing monitoring of industry developments, ensuring that Dream Giveaway’s operations remain aligned with evolving legal frameworks.
Bottom Line?
Jumbo’s acquisition of Dream Giveaway marks a pivotal expansion into the US prize draw market, setting the stage for accelerated international growth and diversification.
Questions in the middle?
- How will Jumbo balance integration with preserving Dream Giveaway’s operational autonomy?
- What regulatory challenges could emerge as Jumbo scales its US prize draw operations?
- How quickly can Jumbo leverage its technology to enhance Dream Giveaway’s growth trajectory?
