Published on: August 25, 2025, 01:01h.
Updated on: August 25, 2025, 01:01h.
- Jackpot.com is establishing a unique position in the lottery courier market
- Online lottery is an underestimated yet rapidly expanding sector in gaming
With the Powerball drawing tonight boasting a staggering $750 million, excitement around lotteries is peaking, shedding light on the online lottery market with notable players like Jackpot.com.
Jackpot.com, launched by Akshay Khanna, Roi More, Yariv Ron, and Christopher Brown, is a privately-owned platform that allows users to purchase both scratch-off and traditional lottery tickets through a mobile app in states where it’s legally permitted. It also enables lottery retailers to buy tickets on behalf of bettors and verify ticket ownership via scanning.
The online lottery segment, though modest, is witnessing rapid growth. Currently, among its main competitors like DraftKings-owned Jackpocket and Lotto.com, Jackpot.com ranks as the smallest concerning app downloads, with approximately 300,000 compared to Lotto.com’s 500,000 and Jackpocket’s eight million, as noted by Citizens Equity Research Analyst Jordan Bender.
With an impressive $42 million in funding, Jackpot.com operates across Arkansas, Colorado, Massachusetts, New Jersey, New York, Ohio, and Texas.
Jackpot.com Poised for Major Growth
While Jackpot.com has not disclosed a public valuation yet, a key transaction in the lottery courier sector was DraftKings’ acquisition of Jackpocket for $750 million in 2024, which was previously valued at $620 million.
Currently, there are no unicorns—private companies valued at over $1 billion—in the online lottery space, but significant growth potential exists, especially as online sales account for only about 1% of total lottery ticket sales in the U.S., according to Bender.
The existing online lottery footprint provides the highest potential returns right now. A comprehensive marketing strategy could further boost online ticket sales penetration,” states the analyst.
Bender emphasizes that Jackpot’s management does not aim to compete directly with physical lottery retailers. Instead, their focus remains on reaching consumers who have not purchased lottery tickets before, as well as those who have only made infrequent purchases or wish to augment their ticket buying from home, particularly before significant draws.
This strategy could pave the way for expansion into additional states, particularly as Jackpot’s revenue growth rate surpasses that of the overall lottery industry.
“While the company is not looking to move beyond its current seven states just yet, future expansion into more states and offerings beyond traditional draws and scratch tickets is anticipated,” adds Bender. “Overall, we foresee Jackpot’s revenue growth significantly outpacing the broader lottery growth rate of 5% CAGR in the United States.”
Understanding Challenges in Texas
Following a series of lottery-related issues in Texas concerning internet couriers, the online lottery sector received increased scrutiny. However, this scrutiny has ushered in clearer and more robust regulatory frameworks, which could benefit companies like Jackpot.
Bender notes that discussions around internet lottery couriers at the state level are becoming more straightforward, with states implementing measures to prevent a repeat of the Texas issues. Increased clarity and protections could enhance Jackpot.com’s prospects and those of its users.
Jackpot.com enjoys the backing of prominent investors including Accomplice, Arctos, Courtside VC, Elysian Park, Powerhouse Capital, Sapphire, and 645 Ventures.