Online lottery courier Jackpot.com has entered a sixth U.S. market, launching in New Jersey.
The company has a number of investors rooted in the New Jersey sports scene, including the Tisch family, co-owners of the New York Giants, the National Women’s Soccer League’s Gotham FC as well as New Jersey Devils legend and NHL Hall of Famer Martin Brodeur.
It has now stepped into the state’s market, which is one of the largest in the country. Total lottery sales in the Garden State reached a record $3.72 billion in the 2023 fiscal year.
“We’re thrilled to announce Jackpot.com’s New Jersey launch, the sixth state that will feature our unique service,” said Jackpot.com CEO and Co-Founder Akshay K. Khanna in a release. “We are excited to help New Jerseyans play the lottery online with increased convenience, security, and safety. At Jackpot.com, we’re always looking to enhance the player experience through increased accessibility and a more convenient and secure environment for players to purchase tickets, while also ensuring players never lose a winning ticket ever again.”
Jackpot.com allows lottery players to buy official state lottery tickets from their device through the app or website. In New Jersey, it will offer instant-order tickets for Powerball and Mega Millions and a slate of state lottery games including Pick-3, Pick-4, and Cash 4 Life. Winnings under $600 are transferred in real-time to players’ account, while a ticket is sent to players for any winnings over $600.
The New Jersey launch comes on the heels of the company going live in the Arkansas lottery market in March.
In all, Jackpot.com is now live in Texas, Ohio, New York, Massachusetts, Arkansas and New Jersey. its other investors include the likes of Fanatics founder Michael Rubin, NBA stars James Harden and Joel Embiid, and the ownership groups of several NFL teams.
It announced this month that it has become an Associate Member of the North American Association of State and Provincial Lotteries (NASPL).
Investors look to New York success
Venture capital firm Next 3 Ventures, which counts several members of the Tisch family as limited partners, pointed to Jackpot.com’s success in neighboring New York as a motivation.
As part of its launch in the Empire State, Jackpot.com also announced a splashy marketing partnership with the New York Yankees, whose owners invested in the company.
“We saw how successful last summer’s New York launch was for Jackpot.com and we knew we wanted to be a part of bringing the fun and accessibility of online lottery to New Jersey,” said Carolyn Tisch Blodgett, CEO and founder of Next 3. “We are happy to be a part of Jackpot.com’s continued growth in the tri-state area, investing in an intuitive, easy-to-use method that is sure to be enjoyed by New Jersey consumers.”
Competing with Jackpocket a stiff challenge
In New Jersey, Jackpot.com will attempt to compete with Jackpocket, the state’s lottery courier app that was acquired by DraftKings for $750 million earlier in 2024.
Jackpocket has been operational in New Jersey, which was the first state to legally authorize lottery courier services, since 2019. It launched its new Jackpocket Casino in New Jersey through a partnership with Caesars in January, making it the first U.S. lottery platform to enter the online casino space. Jackpocket Casino earned nearly $1.6 million in casino revenue in April, its second full month of operations, up 63% from March.
DraftKings CEO Jason Robins said on an earnings call earlier this year that a primary goal of the Jackpocket acquisition is cross-selling between its lottery and online casino operations.
