When it launched in New Jersey in 2019, Jackpocket was the first registered lottery courier service in the U.S. with New Jersey the first state to formally authorize such services. Since then, nearly $69 million has been returned to state programs and the pension system from lottery tickets ordered on the app. There have been more than 310,000 winners and over $88 million in winnings on Jackpocket in New Jersey, including a $9.4 million Pick-6 winner – the single largest legal-and-regulated win ever on a mobile device in the country. The app is now available in 18 U.S. jurisdictions.

And 2024 is off to a hot start. In late January, Jackpocket expanded its commitment to the Garden State by launching Jackpocket Casino here – through a partnership with Caesars Interactive Gaming New Jersey LLC – becoming the first lottery platform in the country to enter the online casino space.

“This launch immediately expands Jackpocket’s entertainment offerings in New Jersey and will do the same for fans in other markets in the future,” said Peter Sullivan, Jackpocket CEO and founder, in a Jan. 31 news release. “As the iGaming space continues to grow, we’re excited to provide our engaged lottery user base with an easy and fun way to get involved in games we know they already love.”

Sullivan has placed an emphasis on expanding technology while denouncing the days of unregulated big tech, working hand-in-hand with lottery commissions and state regulators. Those efforts are reflected in Jackpocket becoming the first iGaming operator in the country to receive Internet Compliance Assessment Program certification for best practices in player protection. The certification, administered by the National Council on Problem Gambling, is the highest standard in the U.S. for online responsible gaming.

“Our mission is to provide a fun and responsible online casino experience resting on ensuring the highest levels of safety and security,” said Sullivan. “Every step we take is with the goal of safeguarding our users. We are proud of the fact that with Jackpocket Casino, players can confidently participate in their favorite games, knowing that their safety is not only a priority, but also professionally validated by the NCPG.”

Another major development came on Feb. 15, when DraftKings announced an agreement to acquire Jackpocket for $750 million. “We are very excited to enter the rapidly growing U.S. digital lottery vertical with our acquisition of Jackpocket,” said Jason Robins, co-founder and CEO of DraftKings. “This transaction will create significant value for DraftKings not only by giving our customers another differentiated product to enjoy but also by improving our overall marketing efficiency similar to how our daily fantasy sports database created an advantage for DraftKings in OSB and iGaming.”

“Together with DraftKings, we will be able to bring tremendous value to our customer base as we advance our mission to create a more convenient, fun, and responsible way to take part in the lottery,” said Sullivan. “DraftKings’ broad footprint and exceptional mobile products present an opportunity to meaningfully expand the digital lottery vertical, and we could not be more excited to come together with DraftKings.”

That deal, which has been approved by each company’s board of directors as well as Jackpocket’s shareholders, is subject to required regulatory reviews and other closing conditions and is expected to close by the second half of this year.

What’s next?

Following all of these developments, NJBIZ caught up with Sullivan to discuss the company’s background, recent moves, importance of the Jersey market, next steps and more.

“I was raised in a family with a deep-rooted tradition of playing the lottery. My grandmother was known as the ‘Lotto Queen’ and passed her passion down to my father, who bought lottery tickets every single day,” Sullivan said. “Because he always had to get his numbers in, my father would make us late for my basketball games and our family gatherings, and I grew frustrated with the inconvenience of his habit. One day I had the realization – ‘Why can’t we just order tickets from our phones?’”

That sparked the idea for Jackpocket, which he founded in 2013 with a mission of creating a more convenient, fun and responsible way to participate in the lottery. It’s a mission that Sullivan says still serves as the company’s guiding principle.

“As the first third-party lottery courier app in the U.S., we offer lottery fans a secure way and convenient way to order official state lottery tickets. We’ve found a market by attracting players who may not adhere to the habits of lottery players in the past – our data shows strong use by players under 40, and 67% of Jackpocket mobile app users are 18-45 years old,” said Sullivan. “Since our launch in 2013, we have introduced a new generation to the lottery, revolutionized the industry, and surpassed over $1 billion in lottery tickets fulfilled. Our users have won over $420 million in lottery prizes and 41 people have won lottery prizes worth $1 million or more on the app.”

On the topic of expansion, Sullivan noted that in addition to entering new markets and new states, Jackpocket has been working on a building of a mall of interactive customer experiences where players can win real money prizes through sweeps, slots, bingo and now casino – with the lottery product serving as the anchor.

He said the launch of the online casino in New Jersey marks a key next step in that expansion to become an overarching gaming and entertainment brand. “As the iGaming industry continues to grow, we’re excited to tap into new demographics and expand our offerings to our engaged lottery user base with more convenient, fun, and responsible ways to play games that they know and love,” Sullivan said.

With the lottery service first launching here and now the online casino, Sullivan stressed that New Jersey holds major significance for Jackpocket.

“New Jersey is one of the largest casino industries in the country, and with the crossover between our two platforms, Jackpocket fans can seamlessly move between the Jackpocket Casino and Jackpocket Lottery apps, helping us to amplify visibility and awareness of new winners, games, and prizes in the Garden State,” Sullivan explained. “As the iGaming space continues to grow, we’re excited to provide our users in New Jersey who already enjoy the lottery with easy and fun ways to get involved in casino games too.”

Sullivan reiterated, though, that safety is at the core of every move the company makes. “That’s why we’ve worked to go above and beyond safety requirements for online casino products,” he said. “In fact, as we launched, Jackpocket Casino became the first iGaming operator in America to receive iCAP certification for best practices in player protection, backed by the expertise of the National Council on Problem Gambling. iCAP is the highest standard in the U.S. for online responsible gaming and required Jackpocket to demonstrate player safety through rigorous evaluation.”

The Jackpocket CEO also pointed out that these efforts and commitments to player safety were in place well before the casino product launched. “In 2018, we became the first lottery courier to receive iCAP certification, and in 2019, we won NCPG’s 2019 Best Corporate Social Responsibility Award for our commitment to preventing and addressing problem gaming.”

He could not go much further in discussing the DraftKings deal while that process plays out. Sullivan pointed to his comments in the news release about the excitement to come together with the company to meaningfully expand the digital lottery vertical, while bringing tremendous value to its customer base in advance of the company mission.

As for Jackpocket’s focus and goals in 2024, Sullivan said he is excited about what has already happened and wants to continue growing. “Jackpocket is focused on trailblazing the future of entertainment through new online, app-based products and experiences in the real-money gaming industry,” he said. “We will continue building on the momentum we’ve achieved thus far in bringing accessible, convenient, and safe play to lottery and casino fans alike. Jackpocket is just getting started and I’m looking forward to the innovation and expansion that’s to come.”