Jackpocket

Jackpocket Inc.
Company typeSubsidiary
IndustryLottery
Founded2013; 12 years ago (2013)
FounderPeter Sullivan
Headquarters
New York City
Owner
Number of employees
200+ (2022)
Websitewww.jackpocket.com

Jackpocket, Inc. is an American technology company headquartered in New York City which is a subsidiary of DraftKings. It produces an app for ordering lottery tickets in seventeen U.S. states, along with Washington, D.C. and Puerto Rico.[1][2]

History

Jackpocket (a portmanteau of 'jackpot' and 'pocket') was founded in 2013 by Peter Sullivan to create an app for ordering lottery tickets.[3]

The company operates as a lottery courier service; users can order lottery tickets through the Jackpocket app, but the tickets are purchased by the company on the user's behalf; it earns its revenue from service fees when a user funds their account. Over 2024, fees rose from 10% of funded amount to 14%.

The physical tickets are scanned and accessible digitally via the app, and winnings under $600 are automatically redeemed into the user's account.[4][5] It is the first registered lottery courier service in New York and New Jersey, the two U.S. states which have passed regulations for the operation of digital lottery courier services.[6][7]

In October 2021, a New Jersey Lottery player won a $9.4 million jackpot on a Pick-6 ticket ordered via the Jackpocket app.[8]

In November 2021, the company raised a $120 million Series D round led by venture capital firm Left Lane Capital which included participation from Mark Cuban.[9] To date, Jackpocket has raised $200 million and is valued at $620 million.[1][10]

In 2022, Jackpocket received a casino license in New Jersey through a deal with Caesars Interactive Entertainment and will be launching iGaming products by 2023.[1] In December 2022, Jackpocket signed a sponsorship deal with the Dallas Stars of the National Hockey League.[11]

On February 15, 2024, the company announced its sale to DraftKings for $750 million, a deal completed on May 23.[5][12]

References

  1. ^ a b c Yakowicz, Will (2022-06-17). "Meet Jackpocket, The Mobile App Winning Big In The $83 Billion U.S. Lottery Market". Forbes. Retrieved 2022-09-08.
  2. ^ "Jackpocket". Retrieved 2023-01-16.
  3. ^ ""Jackpocket" app aims to modernize - and monitor - lottery purchases". CBS News. 2015-09-30. Retrieved 2022-09-08.
  4. ^ Klein, Melissa (2019-05-18). "New gambling app will buy lottery tickets for you". New York Post. Retrieved 2022-09-08.
  5. ^ a b Glickman, Ben. "DraftKings to Buy Jackpocket for $750 Million". WSJ. Retrieved 2024-02-16.
  6. ^ Karlin, Rick (2021-01-26). "New York approves app that will deliver your lottery tickets". Times Union. Retrieved 2022-09-08.
  7. ^ Marcus, Samantha (2019-12-12). "You can get N.J. lottery tickets, prizes delivered to your phone with new service". NJ.com. Retrieved 2022-09-08.
  8. ^ Goldman, Jeff (2021-10-22). "$9.4 million Pick 6 lottery ticket sold with Jackpocket app". nj. Retrieved 2024-02-16.
  9. ^ DiFurio, Dom (2021-11-09). "Mark Cuban backs rapidly growing Texas Lottery app Jackpocket in $120 million funding round". Dallas Morning News. Retrieved 2022-09-08.
  10. ^ Goldman, Jeff (2021-10-22). "$9.4 million Pick 6 lottery ticket sold with Jackpocket app". NJ.com. Retrieved 2022-09-08.
  11. ^ "Jackpocket Gets On The Ice With Dallas Stars Deal". 8 December 2022.
  12. ^ "DraftKings Completes Acquisition of Jackpocket". DraftKings. 2024-05-23. Retrieved 2024-06-11.