Headquarters: New York, New York
Jackpocket’s mission is to create a more convenient, fun, and responsible way to take part in the lottery. As the first licensed third-party lottery courier app in the U.S., Jackpocket offers lottery fans a secure way to order official state lottery tickets. By helping today’s players participate in the lottery from the convenience of their smartphone, Jackpocket also helps state lotteries drive incremental revenue to fund essential state programs, such as education, veterans services, natural resources, and more.
The majority of lottery tickets are still purchased in person, with 90% of players buying their tickets at physical stores. This reliance on in-person purchases limits accessibility and convenience for potential players, particularly younger demographics accustomed to online transactions. However, this trend presents a major opportunity for online lottery companies. With the rise in digital platform usage and shifting consumer behaviors post-COVID-19, there's a growing market for online lottery sales. Capitalizing on this, online lottery firms can provide a more convenient buying experience, potentially broadening their customer base and modernizing the industry.
Jackpocket offers a mobile platform that allows users to buy lottery tickets online. This solution taps into the growing trend of digitalization and the convenience of mobile technology. Users can purchase tickets for a variety of lottery games directly from their smartphones, making the process more accessible and fitting into the digital lifestyle of modern consumers, especially younger demographics who prefer online transactions.
“It's a very simple business,” Mark Cuban says of his investment in Jackpocket. “It makes playing the lottery easier and more fun.”
Jackpocket is a lottery application that provides a safe method for purchasing official lottery tickets from state-licensed retailers.
Jackpocket aims to make lottery participation more convenient, enjoyable, and responsible. With Jackpocket’s app, users can easily order tickets for their preferred games, view lottery results, join in-state lottery pools with fellow Jackpocket players, and activate Smart Orders to ensure they never miss a drawing.
Jackpocket CEO Peter Sullivan, drawing from his personal experience of buying lottery tickets in person with his family, approached his network of investors with a novel concept. He pitched it as "An Uber for the lottery," a vision that ultimately took shape as Jackpocket.
From a technical standpoint, Jackpocket operates as a licensed lottery courier service. This legal designation permits it to purchase lottery tickets on behalf of customers and securely hold them until the draw. Rather than visiting a convenience store for a ticket, users can simply use the app to choose their numbers (or opt for a computer-generated selection), and Jackpocket will handle the purchase for them.
The app incorporates geofencing technology, ensuring users cannot purchase lottery tickets from outside their state.
For winnings below $600, Jackpocket credits the amount directly to the user's account. In cases where the winnings exceed $600, Jackpocket sends the physical ticket to the winner, enabling them to claim their prize personally.
"Jackpocket is the first mobile phone application that allows players to play official state lottery games that they already know and love. Our app uses geotechnology to verify that you are within a particular jurisdiction and then we also verify your age and identity to make sure you are over the age of 18 and can play the lottery. You have the ability to order your ticket directly from your phone, but the convenience doesn’t stop there. Players don’t have to worry about holding onto their tickets, checking their tickets, or even redeeming their tickets. We’ve also added really compelling new features like the ability to play in a pool socially with your friends and colleagues as well as the ability to set up an Autoplay, so you never miss a drawing,” said Jackpocket CEO Peter Sullivan.
Jackpocket ensures customer assurance by providing images and serial numbers of the tickets, confirming that customer ticket orders have been successfully fulfilled.
Jackpocket provides a variety of game options that vary by state, including globally popular games like Mega Millions and Powerball.
In 2021, Jackpocket and Circle K, one of the largest convenience store brands in the U.S., announced a partnership with exclusive perks for lottery players. Jackpocket provides special offers to Circle K shoppers in over 1,650 stores across Ohio, Texas, Colorado, Minnesota, Arkansas, New Hampshire, and New York.
Jackpocket generates revenue primarily through a convenience fee applied to each ticket purchase. The fee covers the cost of providing the service and ensures the platform remains free for state lotteries and players.
"We charge 9% when you add funds to your account. So basically, the ticket price is exactly the same. You're just getting a fee when you add money to your account, and that's because we're also getting charged with a transaction fee from the bank or credit card company," said CEO Sullivan.
According to Forbes, current estimates highlight that Jackpocket and the other mobile lottery courier apps have captured between 2% to 3% of the national lottery market, indicating significant upside potential.
In June 2023, Jackpocket announced that it will officially launch in Nebraska.
In July 2023, Jackpocket announced that it will officially launch in Massachusetts.
In August 2023, Jackpocket announced that it is the first-ever Digital Lottery Courier Partner of the Boston Red Sox. As the inaugural Digital Lottery Courier Partner for the Boston Red Sox, Jackpocket will be prominently featured with in-game signage on the Truly Terrace LED ribbon and scoreboard LED displays, alongside a pregame advertisement airing before each home game at Fenway Park. Furthermore, Jackpocket will maintain a strong presence across Red Sox social media platforms, offering fans opportunities to receive complimentary lottery tickets during thrilling, high jackpot instances, as well as a chance to win various other prizes and experiences during the season.
In October 2023, Jackpocket announced that it is the official digital lottery courier of the USA Today Network. Jackpocket, as the sole digital lottery courier for the USA TODAY Network, will engage a wide audience nationwide, offering a convenient and enjoyable method for the USA TODAY Network's viewers to purchase lottery tickets directly from their mobile devices. “Partnering with Jackpocket as Gannett’s official digital lottery courier will leverage the synergies between our mutual audiences including our 45 million engaged sports fans,” said Kate Gutman, Gannett Senior Vice President of Content Ventures. “Given our reach and authority across the U.S., we hope to introduce Jackpocket as a simple and fun way to order official state lottery tickets from the comfort of home or on a device.”
In December 2023, Jackpocket announced that it is now available in Puerto Rico.
In February 2024, DraftKings announced that it has reached an agreement to acquire Jackpocket, the leading lottery app* in the United States, for total consideration of approximately $750 million, with approximately 55 percent of the consideration payable in cash funded from the Company’s balance sheet with no capital raise required and approximately 45 percent of the consideration payable in the Company’s Class A common stock, subject to customary purchase price adjustments. Under the terms of the merger agreement entered into on February 11, 2024 (the “Merger Agreement”), Jackpocket stockholders will receive total consideration of approximately $750 million on a fully diluted basis, consisting of approximately $412.5 million in cash, subject to certain customary purchase price adjustments, and approximately $337.5 million in the Company’s Class A common stock, subject to the collar mechanism described below.