new Yorkonline based lottery application Jackpocket announced it raised $ 16 million in a Series B funding round. Venture capital firm, Conducting companies, led the charge. DCM companies and old NBA Commissioner, David stern also participated.
Recent investment brings Jackpocket’s total funding of $ 25 million when combined with a series of Series A investments.
Carey lai, founding member and managing director of Conductive Ventures, spoke about the decision to invest in a Press release.
“We invested in the Jackpocket team because they are approaching things the right way: by innovating in its proprietary ticket processing technology, by carefully navigating each state’s specific legislative environments, and passing through the appropriate channels. to operate in a way that puts regulators at ease, lotteries better funded, and consumers interested in a new way of playing the lottery.
Bet on Jackpocket
Online gambling is a hot topic these days. Interest comes from the recent launch of several sports betting markets, gaming expansion laws and a nation obsessed with colossal lottery jackpots.
Jackpocket is positioned to take advantage of this interest. Specifically, it focuses on the lottery.
Lottery fever has swept the country thanks to the recent $ 1.6 billion (with a B!) Mega Millions jackpot. Jackpocket makes it easier for people to participate in this exciting action.
Currently, the app is only available to players located in Minnesota and New Hampshire.
Lottery players can purchase their lottery tickets through the Jackpocket app. This is how it works:
- A player loads money into their Jackpocket account. There is a seven percent fee on the total amount deposited.
- The player buys the tickets. Geolocation services are used to confirm that the player is physically located in Minnesota or New Hampshire.
- Members of the Jackpocket team then deploy to a lottery retailer to purchase the tickets and send the player a scanned image.
Earnings under $ 600 automatically appear in the player’s account. With larger jackpots, Jackpocket manages to deliver the physical ticket to the player so that he can cash it in person. Tax laws require that winners of price over $ 600 to sign tax forms.
What makes the lottery app innovative?
There are a few things that make the Jackpocket app attractive to venture capitalists.
Jackpocket offers a wide variety of lottery games, including the popular Powerball and Mega Millions. A player can set preferences for purchasing tickets when a jackpot automatically reaches a certain amount.
It also strives to protect enthusiastic lottery players from playing above their pay level by placing a Limit of $ 100 per day on purchases.
Jackpocket recently released a new feature: “Swimming Pools”. It allows groups of players to join forces and pool their Powerball and Mega Millions tickets into one largest combined pool with more chances of winning.
The feature was in demand during the recent Mega Millions craze. In fact, more 3000 lottery players joined a Jackpocket pool during this time.
Is Jackpocket Legal?
The legality of Jackpocket accepting mobile lottery ticket purchases in states where online gambling is illegal has raised some eyebrows.
“The reason this is legal is that they are actually buying the ticket from the actual lottery retailer,” said Adam prock, spokesperson for Minnesota State Lottery, To Cleveland.com. “They work as a courier service.”
If you think about it, it’s not illegal to buy a lottery ticket for someone else.
Jacques Grassel, the executive director of Citizens Against Expanded Gambling, does not agree. He argues that if you can order a lottery ticket online, it is online gambling.
“What’s next: can you pay someone to sit on the slot machine while you press your phone button from the couch?” Grassel said.
Currently, some Minnesota lawmakers have expressed concern. It is not clear whether there are plans to address the issue when the legislature meets in Jan 2019.
Jackpocket has plans for the new influx of money
The capital will be used to expand Jackpocket across the country. As a result, there is a possibility of expansion in Ohio somewhere next year.
Jackpocket CEO Peter Sullivan talked about what the recent investment means to him and to the company.
“There is no greater validation than someone who invests in your business to say that they believe in what you have accomplished as a business, but more importantly, in your vision to create something. transformational.
“We look forward to growing our relationships with lotteries and supporting their beneficiaries, and serving as trusted partners, as they keep pace with the evolution of the game in search of a better lottery experience for all. the world.”