Jackpot.com Rising Player in Online Lottery Niche
Posted on: August 25, 2025, 01:01h.
Last updated on: August 25, 2025, 01:13h.
- Jackpot.com carving out niche in lottery courier space
- Internet lottery is an overlooked, though fast-growing gaming segment
With Monday night’s Powerball drawing ranking as the 10th-richest on record at $750 million, lottery fever is back and that could shine a light on the internet lottery ecosystem, including players such as Jackpot.com.
Founded by Akshay Khanna, Roi More, Yariv Ron, and Christopher Brown, privately held Jackpot.com provides users with an avenue to buy scratchers and traditional lottery tickets via a mobile application in states where authorized. It also allows lottery retailers to purchase tickets on behalf of bettors and scan the tickets for proof of ownership.
Internet lottery is a small, but rapidly growing corner of the broader gaming industry, and Jackpot.com is the smallest, as measured by downloads, among its primary rivals, which are DraftKings-owned Jackpocket and Lotto.com. Downloads of the Jackpot.com app are around 300K compared to 500K for Lotto.com and about eight million for Jackpocket, according to Citizens Equity Research Analyst Jordan Bender.
Jackpot, which has raised $42 million, operates in Arkansas, Colorado, Massachusetts, New Jersey, New York, Ohio, and Texas.
Jackpot.com Could Be on the Cusp of Something Big
A public valuation for Jackpot.com hasn’t been published, but the marquee transaction to date in the lottery courier space was DraftKings’ (NASDAQ: DKNG) 2024 acquisition of Jackpocket for $750 million. Before that, the target was valued at $620 million.
In other words, there aren’t any unicorns — private companies valued at least $1 billion — in the internet lottery realm, but there’s ample room for growth because, as Bender points out, online sales account for just 1% of all lottery tickets sold in the US.
Its (online lottery) existing footprint provides it with the highest return at this point, and we get the sensethat a multi-pronged approach of marketing initiatives should help increase the penetration of online ticket purchasing,” says the analyst.
He adds that Jackpot management isn’t focused on competing with brick-and-mortar lottery retailers. Rather, the company’s points of emphasis are people who have never bought a lottery ticket, those who have only bought in purchase, and those who made initial purchases in stores and may want to add more tickets from home in advance of large draws.
That operating method could facilitate expansion into new states at a time when Jackpot’s revenue compound annual growth rate (CAGR) outpaces the broader lottery industry.
“That is not to say the company will look outside its existing seven states, and we could expect to see it expand into more states in the coming year, along with offerings outside the draw and scratcher categories,” adds Bender. “Overall, we believe revenue for the company is well outpacing overall lottery growth of a 5% CAGR in the United States.”
Lessons from Texas
Following a series of lottery-related controversies in Texas tied to internet couriers, the online lottery segment came under scrutiny, but the silver lining for companies such as Jackpot is that the fallout led to more robust, clear regulatory frameworks.
Bender notes that state-level conversations around internet lottery couriers are getting easier and that states are taking steps to avoid a repeat of what happened in Texas. More clarity and protections could benefit Jackpot.com and its customers alike.
The company is backed by investors including Accomplice, Arctos, Courtside VC, Elysian Park, Powerhouse Capital, Sapphire, and 645 Ventures.
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