Lottery ticket company Jackpot Gets Funding By Top Sports Execs: By bringing the American lottery online, Jackpot hopes to expand the industry. Leading sports figures have invested in the business, including NBA stars James Harden and Joel Embiid, as well as NHL legend Martin Brodeur. The platform wants to draw in a fresh, younger audience.
Top Sports Executives Lead Jackpot $35 Million Funding Round
A $35 million series A investment round spearheaded by some of the biggest names in sports, who recognize the exciting development potential in digital lottery sales, was closed on Wednesday, according to the online lottery ticket provider Jackpot.
The infusion of capital may allow Jackpot to launch its website and app later this year in a few countries where the sale of online lottery tickets is permitted.
The business claimed, for instance, that it could operate in the states of New York, New Jersey, Texas, Ohio, and Oregon.
Accomplice, a venture capital firm co-founded by DraftKings board member Ryan Moore and Courtside Ventures, an early-stage investor in sports, digital media, fitness, and gaming enterprises, provided the majority of the funding for the round.
The Haslam Sports Group, which owns the Cleveland Browns, the Kraft Group, which owns the New England Patriots, Fanatics CEO Michael Rubin, DraftKings CEO Jason Robins, and Boston Red Sox president Sam Kennedy are also investors.
Some of the well-known investors include NBA stars Joel Embiid and James Harden as well as NHL legend Martin Brodeur.
Akshay Khanna, co-founder of Jackpot and CEO of North America, said CNBC in an interview, “What we are actually doing is just allowing you to buy that lottery ticket without ever leaving your sofa.”
The $100 billion lottery industry still relies heavily on cash, with most tickets being purchased in bodegas, convenience stores, gas stations, and other places.
Jackpot will make money by adding a convenience fee to transactions in an effort to modernize the company and better cater to the online shopping preferences of today’s consumers.
The business also stated that it is presently seeking approval to roll out the service from local regulators in a few areas.
Because they understand that this is essentially a fundamentally different channel for the same goods, more than a dozen states have been extremely receptive to this, according to Khanna.
In 2021, Jackpot said that although 53% of Americans bought lottery tickets, just 5% of those tickets were bought online.
According to Khanna, expanding online lottery ticket availability will boost state sales revenue.
According to Khanna, “We are positive that this will appeal to a potentially younger and more diversified demographic.”
It’s one of the factors that states that support this model do so because one of the objectives is to make this product available to a wider range of consumers than might typically buy lottery tickets.
But some critics, including the National Council on Problem Gambling, caution that making it easier for people to purchase lottery tickets could provide a dangerous slippery slope for those who are already at risk.
Jaime Costello, the organization’s director of programs, wrote in an email that “any type of internet gambling naturally gives the user a sense of anonymity and is much easier to disguise than other forms of gambling.”
These traits, when combined with rapid access to purchases, results, etc., raise the possibility of issues for those buying lottery tickets online.
Khanna stated that Jackpot will have rules for age verification and that the business is investing to comply with state laws.