Jackpocket
AcquiredNew York, US · Founded 2013 · Delaware corporation · 73 employees on LinkedIn · 19 known investors
Jackpocket is a licensed third-party lottery courier app that enables users to order official state lottery tickets via smartphone. The platform serves lottery players in the United States and helps state lotteries generate incremental revenue for public programs.
Also known as Jackpocket, Inc.
Founders & leadership
Jackpocket was founded in 2013 by Peter J. Sullivan, III.
Board
Investors · 19
.png)
Also in the syndicate · 3
Reported raises · per SEC filings
Form D private placements$2.6M disclosed across 1 of 4 rounds · 2015–2021
▶$2.6MraisedMay 2015 · 30 investors · OtherRule 506(b)
- Peter J. Sullivan, IIIExecutive Officer, Director
- Adam RothsteinDirector
- Offering amount
- $2.6M
- Amount sold
- $2.6M
- First sale
- Apr 2015
- Incorporated
- Corporation, Delaware, 2013
- Federal exemptions
- 06b
Source: SEC EDGAR Form D. Amounts as filed; amended filings shown once at their latest values.
Valuation · disclosed
Disclosed eventsSource: SEC prospectus filings, and round valuations the company or its investors disclosed — follow each entry's link for the claim.
Company profile
researched Aug 2026Jackpocket, Inc. is a New York City-headquartered technology company that operates a mobile application through which users order official state lottery tickets in jurisdictions where third-party courier services are permitted. Users select numbers for draw games such as Powerball, Mega Millions and Pick 3, or order state scratch games; Jackpocket personnel then purchase the corresponding physical tickets from licensed retailers, send a watermarked scan of the ticket to the user's app account along with a confirmation email containing the ticket serial number, and store the paper ticket in a fireproof safe. Prizes below the in-store redemption threshold (generally under $600) are credited to the user's Jackpocket account for further play or withdrawal, while larger prizes require the paper ticket to be transferred to the player for a direct claim with the state lottery.
The app includes jackpot and results tracking, advance ordering for up to 50 drawings, a referral credit program and the Dynasty Rewards loyalty program. Regulatory controls include age verification (18+, 21+ in Arizona and 19+ in Nebraska), identity document upload, GPS-based geolocation with VPN detection to confirm the player is within a supported state, and responsible-gaming measures such as an initial $100 daily deposit cap. As of the App Store listing, Jackpocket was available in Arizona, Arkansas, Colorado, Washington DC, Idaho, Maine, Massachusetts, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New York, Ohio, Oregon, Puerto Rico and West Virginia, with in-app scratch games in AZ, CO, MA, MT, NE, OH and OR.
Jackpocket is not affiliated with any state lottery and positions itself as a courier rather than a direct seller of lottery tickets. Following its acquisition by DraftKings, it operates as a wholly owned subsidiary, with the app listed under DraftKings as developer.
Founding story
Peter Sullivan conceived the idea around 2012 after observing his father, a lottery player in New York whom he described as computer illiterate, buying tickets in person; Grokipedia describes the inspiration as his father's routine of crossing state lines to buy tickets. Sullivan combined the then-current trends of moving offline services online and mobile gaming, describing the concept as "the Uber or Instacart for lottery." The company was founded in 2013, with Grokipedia naming co-founders Eric Parker, Leo Shemesh and Matt Silber, and initially operated from a WeWork space in SoHo.
Business model
Jackpocket acts as an intermediary between lottery players and licensed lottery retailers, buying physical tickets on customers' behalf and delivering digital scans through its app. As described at the time of its Series D, the company charged a 9% fee on amounts deposited into a customer account; playing with winnings and withdrawing funds were not charged.
Fee-based: a 9% charge on customer deposits into the app, with no fee on wagers funded by winnings or on withdrawals (as described in 2021).
Traction
At the November 2021 Series D, Jackpocket reported 2.5 million active users across 10 states, up 300% in the prior eight months. Grokipedia cites over $190 million in total prizes distributed and 20 millionaires created as of 2022, including a $9.4 million win in 2021 described as one of the largest mobile gaming wins in US history. The App Store listing states more than 2 million users have won over $1 billion in lottery prizes as of October 27, 2025, and shows a 4.7 rating across roughly 233,000 ratings.
Latest developments
In February 2025 the Texas Lottery Commission banned ticket purchases through courier services such as Jackpocket, citing a lack of regulatory oversight. In March 2025, after an opinion from New Mexico Attorney General Raúl Torrez finding that the company's memorandum of understanding with the New Mexico Lottery Authority constituted authorization of internet gaming and appeared to conflict with state law, Jackpocket temporarily suspended operations there. In September 2025 the Ohio Lottery Commission suspended Jackpocket's ability to fulfill orders for non-compliance with retailer terms and conditions; the company said it had paused draw-game and scratch-off ordering in the state pending an internal review, while users retained access to their funds. In July 2026, founder Peter Sullivan announced his departure from DraftKings.
▸Full profile — market position, technology, go-to-market, geography, history, risks & controversies
Market position
Described in press materials as the first licensed third-party lottery courier app in the United States and, at the time of the DraftKings deal, the leading digital lottery courier service in the country. Its original competition was characterized as the fragmented convenience-store retail channel; Jackpot.com is a separate third-party lottery app operating in overlapping markets. The company cited North American State and Provincial Lotteries figures putting annual US consumer lottery spend at $85.6 billion, larger than the combined spend on books, movie tickets, video games, concert tickets and sporting events.
Jackpocket operates as a licensed courier that buys and stores official state-issued paper tickets rather than selling lottery products directly, sending users watermarked scans and holding tickets in a fireproof safe. It emphasizes responsible-gaming controls including deposit caps and location and identity verification, and does not alter the underlying state-run games.
Technology
Proprietary software handles ticket ordering, retailer purchase fulfillment and scanning, producing watermarked digital images of each physical ticket for authenticity. Compliance technology includes GPS geolocation, VPN and remote-access detection, identity/age verification and spending limits. The app provides drawing and win notifications, results scanning, and digital scratch-game play.
Go-to-market
Direct-to-consumer mobile app distribution on iOS and, from 2021, the Google Play Store in New York, supported by a referral credit program and a loyalty scheme. The company has used sports and retail partnerships for distribution and marketing, including deals with the New York Jets, the New York Racing Association, the New York Islanders and convenience store chain Circle K, plus sweepstakes promotions. State-by-state expansion depends on licensing and courier permissibility.
Adult lottery players in US states and territories where lottery couriers are permitted. At the time of the Series D the company said about 70% of its buyers were under the age of 45, which it characterized as a more tech-savvy and affluent demographic than the traditional lottery customer.
Geography
Headquartered in New York City (8 West 40th Street per Grokipedia), with a second office opened in downtown Santa Barbara, California in November 2021. Operations span US states and territories that allow lottery couriers; the app listing names AZ, AR, CO, DC, ID, ME, MA, MN, MT, NE, NH, NJ, NY, OH, OR, PR and WV. Operations were suspended in New Mexico in 2025 and paused in Ohio in September 2025; Texas banned lottery couriers in February 2025.
History
The app launched in 2013 as a third-party platform for ordering official state lottery tickets remotely. Early fundraising was difficult — Sullivan said roughly $25 million was raised before 2021 because real-money gaming was "considered taboo" among venture investors. A $50 million Series C closed in February 2021, followed by a $120 million Series D announced in November 2021, when the company operated in 10 states and reported 2.5 million active users. In November 2021 it also opened a second office in downtown Santa Barbara, California. Jackpocket entered a memorandum of understanding with the New Mexico Lottery Authority in March 2022 and launched there. On February 15, 2024, DraftKings announced an agreement to acquire the company for approximately $750 million, closing the deal on May 23, 2024, after which Sullivan became SVP of Lottery at DraftKings. Sullivan announced his departure from DraftKings in a report dated July 2026, about 26 months after the acquisition.
Risks & controversies
The courier model faces regulatory challenge across multiple jurisdictions. Texas banned lottery couriers in February 2025 over oversight concerns. The New Mexico Attorney General concluded in 2025 that the state lottery's MOU with Jackpocket amounted to authorizing internet gaming, triggering renegotiation obligations under the state's Indian Gaming Compact and rendering continued operation subject to challenge; Jackpocket suspended service there. Ohio regulators suspended order fulfillment in September 2025 for non-compliance with retailer terms and conditions, without specifying the violation, and DraftKings declined to comment. Commentary at the time noted broader momentum against lottery couriers, including potential tribal-gaming pushback that could limit the addressable market.
Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed — not independently audited.
Timeline · 11
launches, deals, and filingsSullivan said he was stepping away from the day-to-day running of the lottery courier roughly 26 months after the DraftKings acquisition.
The Ohio Lottery Commission suspended Jackpocket's ability to fulfill orders for non-compliance with its retailer terms and conditions, stating the app would remain inactive in Ohio until internal controls were addressed. Jackpocket said it paused draw-game and scratch-off ordering pending an internal review; users retained access to their funds.
New Mexico Attorney General Raúl Torrez issued an opinion that the MOU between the New Mexico Lottery Authority and Jackpocket constituted authorization of internet gaming, triggering renegotiation under the state's Indian Gaming Compact and appearing to conflict with state law. Jackpocket temporarily suspended lottery courier operations in the state.
The Texas Lottery Commission announced a ban prohibiting the purchase of lottery tickets through courier services such as Jackpocket, citing a lack of regulatory oversight.
The acquisition closed on May 23, 2024, with Jackpocket becoming a wholly owned subsidiary of DraftKings. Founder Peter Sullivan became Senior Vice President of Lottery at DraftKings.
$750M source ↗
DraftKings Inc. (Nasdaq: DKNG) announced a definitive agreement to acquire Jackpocket for approximately $750 million on a fully diluted basis, consisting of roughly $412.5 million in cash and roughly $337.5 million in DraftKings Class A common stock subject to a collar mechanism (about 55% cash / 45% stock), subject to stockholder and regulatory approvals. Cooley advised Jackpocket.
$750M source ↗
Jackpocket entered an MOU with the New Mexico Lottery Authority to provide courier service in the state and announced its launch there in 2022.
Round intended to fund expansion into additional US states and international markets and to broaden the platform beyond lottery ticket sales into raffles, sweepstakes, bingo and social casino games. The company declined to disclose a valuation and said total raised reached just under $200 million.
$120M source ↗
Jackpocket established a second headquarters on State Street in downtown Santa Barbara to support technology and engineering growth.
Announced alongside partnerships with the New York Racing Association, the New York Islanders and convenience store brand Circle K.
Jackpocket launched on the Google Play Store in New York and introduced Prizeout as a way to take lottery payouts as a gift card.
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
Legal entities · 1
corporate structureIn the news
▸Research sources · 8
primary sources listed
- Jackpocket Lottery App App - App Storeapps.apple.com · web
8 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does Jackpocket do?
- Jackpocket is a licensed third-party lottery courier app for ordering official US state lottery tickets, acquired by DraftKings in 2024.
- Who founded Jackpocket?
- Jackpocket was founded by Peter J. Sullivan, III in 2013.
- Who are Jackpocket's investors?
- Jackpocket's investors include 7GC & Co, Bullpen Capital, Cerity Partners Ventures, Conductive Ventures, Darco Capital, DCM Ventures, Digital Currency Group, EQUIAM and 8 more.
- How much funding has Jackpocket raised?
- Jackpocket has disclosed $2.6M raised across 1 of its 4 known rounds.
- Where is Jackpocket headquartered?
- Jackpocket is headquartered in New York, US.