Online lottery ticket vendor Jackpot has announced that it has closed a $35 million Series A funding round, led by some of the biggest names in sports and seeing promising growth in digital lottery sales.
The new funding could allow Jackpot to start operating its website and app later this year in some areas where lottery ticket sales are legal, for example, the company could launch in states such as New York, New Jersey, Texas, and Ohio. and Oregon.
The funding round was led by a joint venture called Acompless that was jointly established by Draft Kings board member Ryan Moore and Courtside Company, a startup investing in sports, digital media, fitness and gaming ventures.
Jackpot, which has said it wants to transform its business to be more in line with consumers’ online buying habits, will seek to generate revenue by charging a service fee when in-store purchases, and the company added that it is currently working with local regulators in select states to obtain obtain the necessary approvals to offer its services.
In 2021, Jackpot reported that research indicates that 53% of Americans have purchased lottery tickets, but only 5% of those tickets were purchased online, and making those tickets more popular online would help increase their sales revenue.