Jackpot Lands $35M in Funding, Investors Include NBA Stars Joel Embiid, James Harden
Posted on: June 22, 2022, 12:30h.
Last updated on: June 22, 2022, 01:36h.
Jackpot, a provider of internet lottery games, said today it closed a $35 million series A funding round that includes some big-name athletes, team owners, and gaming executives.
Jackpot plans to launch operations in the US in select states this year, according to the company. Those states are expected to be New Jersey, New York, Ohio, Oregon, and Texas.
The round was co-led by Accomplice and Courtside Ventures, with participation from the Kraft Group, Michael Rubin, Haslam Sports Group, Elysian Park Ventures, Arctos Sports Partners, Sapphire Sport, Theo Epstein, Fenway Sports Group President Mike Gordon, DraftKings co-founder and CEO Jason Robins, NBA stars James Harden and Joel Embiid, NHL legend Martin Brodeur, musical artist Lil Baby, and Boston Red Sox President and CEO Sam Kennedy, among others,” according to a statement.
Rubin is the founder of Fanatics, while Embiid and Harden play for the Philadelphia 76ers. Earlier today, Rubin revealed he’s selling his 10% interest in the company that owns the 76ers and the NHL’s New Jersey Devils, for whom Brodeur starred.
Growth Seen in Internet Lottery
Traditionally, the $100 billion US lottery business has been offline and driven by cash. As Jackpot notes, last year “53% of Americans purchased lottery tickets, but only ~5% of those sales came from online transactions.”
However, some states are warming to the iLottery concept. While overshadowed by internet casinos and online sports betting, established lottery businesses, broadly speaking, are growing, profitable, and generating cash flow — all alluring traits for investors. iLottery offers its own compelling growth trajectory. As Lottery.com notes, just four percent of $430 billion in global lottery sales currently occur online.
“More and more states across the country are now open to online lottery ticket sales, creating a huge opportunity to digitize the industry and bring a better, more convenient experience for the hundreds of millions of Americans who purchase lottery tickets every year,” said Jackpot North America CEO Akshay Khanna in the statement.
The company plans to use the $35 million in series A funding to accelerate its US expansion, to add staff, to establish partnerships, and potentially for strategic acquisitions.
Jackpot Private for Now
In the statement discussing the funding round, Jackpot doesn’t mention plans to go public, and with capital raising being at the A level, it could be awhile before the San Francisco-based company discusses an initial public offering (IPO).
There are some public companies in the iLottery space, including Lottery.com (NASDAQ:LTRY) and NeoGames (NASDAQ:NGMS). Lottery.com went public last October. That stock is off 82.26% year-to-date, while NeoGames is off 47%.
In the US, NeoGames is operational in Michigan, New Hampshire, North Carolina, and Virginia, and is pursuing iLottery contracts in Alaska, Connecticut, Maryland, Massachusetts, Missouri, Ohio, and Oregon. It also provides iLottery services in Alberta, Canada, and some countries in Europe.