Jackpocket, the only licensed third-party lottery app in the US, has announced the conclusion of a $50m Series C funding round.
After seven years of operation, the firm has won regulatory approval in New York and New Jersey and has also worked with eight other states. Its new investment, it claims, is already paying off as in January alone, new user growth surpassed the entirety of 2020.
Following launching in New York last month, Jackpocket hit 7% of all Powerball tickets sold in the state.
The Series C funding will be used to help fuel new growth marketing campaigns and a series of fresh additions to the Jackpocket team to support its expansion. Jackpocket’s app aims to reach previously untapped lottery audiences, with nearly half of its first-time players aged 18 to 35, and the overwhelming majority of its users under 45.
Peter Sullivan, CEO and Founder, said: “Lottery is the next major form of entertainment to go mobile, and Jackpocket is proud to lead that movement by partnering with state lotteries and legislators in the pursuit of a more accessible, convenient, and responsible lottery experience.
“Our growth over the past 12 months highlights our ability to reach a new demographic of lottery players looking for fun and safe mobile experiences. This next round of funding will allow us to significantly grow our user base as we launch in new jurisdictions, expand our team, and continue to build the lottery of the future.”
The Series C funding was fueled by diverse companies, groups and individuals who, said the operator, share its vision on the lottery and gaming market.
The collective includes firms such as Raine Group, Greenspring Associates, Circle K Ventures, TEGNA Ventures, BRV Capital, and Gaingels, and several individual investors, such as NJ Devils and 76ers owner David Blitzer, actor and producer Sean Hayes, and, NY Islanders owner Jon Ledecky.
Gordon Rubenstein, Managing Partner of Raine Ventures, stated: “Mobile lottery represents a tremendous area for growth in the $300bn global lottery industry, and Raine is pleased to invest in this latest round for Jackpocket, the premier and proven leader in this space.
“Jackpocket’s success is a testament to their deep understanding of the lottery consumer and regulatory environment, their cutting-edge, proprietary technology platform, and clear vision for the future of mobile gaming.
“From our experience in real money gaming, we fully expect Jackpocket to become a household name, and are delighted to partner with them as they continue to expand.”