U.K.-based online lottery ticket company Jackpot has raised $35 million in a Series A funding round including top sports executives and athletes.
Co-led by early-stage investor Courtside Ventures and VC firm Accomplice, the round featured a star-studded list of investors that included NBA superstars James Harden and Joel Embiid.
Fanatics CEO Michael Rubin, New England Patriots owner The Kraft Group, Cleveland Browns owner Haslam Sports Group, DraftKings CEO Jason Robins, and Boston Red Sox president Sam Kennedy also took part in the round, which will facilitate Jackpot’s app launch in the U.S.
- Jackpot is looking to operate in New York, New Jersey, Texas, Ohio, and Oregon.
- The company will generate profits by charging a convenience fee on purchases.
Jackpot’s latest funding round will help the company tap into a U.S. lottery market that is estimated to be worth $100 billion annually. Jackpot aims to bridge the gap between physical and online lottery ticket sales for the 53% of Americans who purchased a lottery ticket last year.
Only about 5% of those lottery ticket sales in 2021 were made online.
Jackpot hopes to increase lottery ticket sales in states that permit online purchases, which in turn would benefit their communities.
With up to 95 cents of every dollar spent on lottery games allocated toward education, healthcare, and other initiatives, Jackpots aims to promote and accelerate positive spending.