The lottery business in the United States is valued at $100 billion annually and it is mostly cash-based. But one company is looking to change that and enable customers to purchase official lottery tickets online in multiple states. This company is called Jackpot, an online lottery ticket app and platform, that recently closed a $35 million Series A funding round.
Online Lottery Ticket App and Platform Completes $35M Funding Round
The $35 million funding round was backed up by some of the biggest investors and operators in the media and entertainment space. The recent round was led by Accomplice and Courtside Ventures, as well as Michael Rubin, Kraft Group, Haslam Sports Group, Elysian Park Ventures and Arctos Sports Partners.
DraftKings co-founder and CEO Jason Robins, the NBA stars Joel Embiid and James Harden, NHL legend Martin Brodeur, Boston Red Sox president and CEO Sam Kennedy, as well as Sapphire Sport and musical artist Lil Baby, are also among the investors in Jackpot’s Series A round.
“More and more states across the country are now open to online lottery ticket sales, creating a huge opportunity to digitize the industry and bring a better, more convenient experience for the hundreds of millions of Americans who purchase lottery tickets every year.”
Akshay K. Khanna, co-founder and CEO of Jackpot North America
Jackpot North America’s co-founder and CEO, Akshay K. Khanna, shared his excitement in a statement. He revealed that one of Jackpot’s goals in the US is to become the leading provider of online lottery tickets. Khanna outlined that the company saw a huge opportunity to help digitalize the industry and offer convenient service for millions of Americans, considering that more US states have greenlighted online lottery ticket sales. In conclusion, he thanked all of the investors who participated in the funding round.
Millions of Americans to Benefit from Jackpot’s Its Best-In-Class Service
According to Jackpot, despite the US lottery industry’s billion-dollar value, for the moment, it remains primarily cash-based. The company said that last year, approximately half of all Americans purchased lottery tickets. However, only 5% of the sales were completed online. With that in mind, Jackpot would be able to leverage its innovative digital platform that facilitates the purchase of state lottery tickets online.
“The new capital will enable Jackpot to launch its product in the United States and to transform the lottery industry through aggressive hiring, strategic acquisitions, partnerships with state lotteries, and local market expansion,”
reads a statement released by Jackpot
In fact, the company’s proprietary technology enables it to offer the best-in-class experience for its customers. Jackpot revealed that it plans to launch its US-facing operations in multiple states this year. The expansion of online lottery sales would also benefit local communities. The company said that with up to 95 cents of every dollar going back to communities, there will be plenty of new contributions to healthcare, education and other important public initiatives.