Jackpocket, known as “the leading lottery app in the U.S. to provide a secure way to order official state lottery tickets,” on Tuesday announced that it has gained online market access in New Jersey for its forthcoming online casino product through an agreement with Caesars Interactive Entertainment.
Already with lottery operations up and running in 10 states — including New Jersey, New York, and Texas — Jackpocket will be the first third-party lottery service to enter the online casino space in the Garden State.
“Following our recent $120M Series D financing, Jackpocket’s mission is to expand into new gaming verticals, and we are confident that lottery fans will be interested in new ways to play including slots, bingo, and table games,” Jackpocket CEO Peter Sullivan said in a statement.
“Our user research has shown a high correlation between Jackpocket lottery players and those who enjoy casino-style gaming. We look forward to bringing the innovative tech, intuitive design, and seamless experience that the Jackpocket app is known for into this new arena.”
Sullivan added that Jackpocket expects to launch its online casino product sometime in 2022, following completion of the approval process with the New Jersey Division of Gaming Enforcement.
Grabbing a valuable ‘skin’
Each of Atlantic City’s nine casinos is permitted to reach up to five partnerships with outside operators to offer online casino gaming, which debuted in the Garden State in 2013.
Caesars already has deals with the World Series of Poker brand, WynnBET, and 888. About half of the 45 available slots are now accounted for, per the DGE’s listing of online casino partners.
Online casino gaming has produced $1.1 billion in gross gaming revenue for its operators and brick-and-mortar casino partners in the first 10 months of 2021.
That is significantly higher than sports betting revenue in the state, which has drawn more media attention. Sports betting operators — with about 90% of their revenue coming from online play — have taken in $641.9 million.
Caesars brands have accounted for $92.6 million in online casino dollars, far behind market leaders Borgata ($341.3 million), Golden Nugget ($310.8 million), and Resorts ($230.3 million).
With a 15% tax on online casino gambling, the state has collected $167.5 million from the vertical so far in 2021.
To lead this expansion and build out the digital operations teams to bring Jackpocket’s iGaming products to market, Jackpocket has announced it is hiring for new roles in the gaming category.
The $120 million raised by Jackpocket last month includes investors such as comedians Kevin Hart and Whitney Cummings, Dallas Mavericks owner Mark Cuban, and San Diego Padres baseball star Manny Machado.
Jackpocket also produced national publicity from a $9.4 million New Jersey Pick-6 win by a woman the company announced as “Carol from Union County.” That was said to be the largest mobile gaming win in U.S. history.
CEO Sullivan, a New Jersey native with an economics degree from Rutgers, told NJ Online Gambling earlier this year that he founded the company after noticing almost a decade ago that his father — an avid lottery player — had to go to a store to play even though most business transactions had an online alternative.
Jackpocket charges a 9% fee on each deposit. But if a ticket wins, the consumer keeps all of the winnings (minus the IRS charge for wins over $600).