- What is Jackpocket, and how does Jackpocket work?
- How does Jackpocket make money?
- Service Fees
- Commissions on Ticket Sales and Winning Tickets
- Jackpocket profit and revenue
- What is the Jackpocket business and revenue model?
- Jackpocket funding, net worth, and valuation
- Jackpocket subsidiaries, acquisitions, and exits
How does Jackpocket make money? Here is the complete, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Jackpocket business and revenue model, how much money Jackpocket makes per year, and how Jackpocket works.
What is Jackpocket, and how does Jackpocket work?
Jackpocket is a lottery app that offers users a secure and simple way of ordering official lottery tickets from state-licensed retailers.
Founded in 2013 by Eric Parker, Leo Shemesh, Matt Silber, and Peter Sullivan, Jackpocket now has more than 2.5 million users across 13 U.S. states in which Jackpocket is licensed in.
So, how does Jackpocket work? To use Jackpocket, you can start by first downloading their mobile app in the Apple App Store or Google Play store (You must be at least 18 years old and live in one of the 13 U.S. states Jackpocket operates in).
Once downloaded, create an account and add money to it through one of their 7 ways. From there – pick your game, and numbers, and place your order.
If your ticket is a winner, your money will be deposited straight into your Jackpocket account if it’s under $600. If over $600, Jackpocket will deliver your physical winning ticket directly to you so you can redeem your prize from the state lottery.
How does Jackpocket make money?
According to Jackpocket, Jackpocket has more than 2.5 million users who use its lottery app to buy tickets. So how does Jackpocket make money off of all these users?
Below is a breakdown of how much money Jackpocket makes and its revenue model. Including all revenue streams and how much they make off each service.
Here are the 2 ways how Jackpocket makes money in 2022
Jackpocket has a revenue model that makes money in two (2) ways; charging service fees and earning commissions on ticket sales and winning tickets.
#1. Service Fees
One of the ways Jackpocket makes money is by charging its user’s service fees.
The way it works is – when a user funds their account to purchase lottery tickets on its platform, Jackpocket takes a 7% to 10% service fee of every dollar that’s added to a user’s account.
This service fee is for, what Jackpocket calls, their courier service. As a courier service, Jackpocket purchases the tickets on behalf of the users from licensed retailers in the Jurisdiction where the ticket orders were placed. They then store the lottery tickets on the user’s behalf for if and when they when.
How much is the Jackpocket service fee?
- 7% to 10% of all funds added to a users account
#2. Commissions on Ticket Sales and Winning Tickets
The other way is that Jackpocket may make money through the commissions they earn from ticket sales and winning tickets purchased through their platform.
It’s important to note, Jackpocket is not a retailer. Jackpocket is just the retailer’s authorized agent for accepting payment from users on its platform. Which they are authorized and operational in 13 U.S states, you can see those list of states here.
A retailer’s commission on ticket sales and winning tickets differ from state to state.
For example, we’ll take 2 states Jackpocket operates in and show how the commissions differ. In New Jersey, retailers earn a 5% commission on every lottery ticket sold and $30,000 on jackpot tickets. And in Texas, it’s also a 5% commission on every ticket sold but 1% of the jackpot ticket or up to a $1 million cap.
This revenue stream is purely speculation given that commission is not stated in Jackpocket’s Terms of Service or anywhere else, for that matter. But, it’s highly probable given that since the retailers get a commission, the authorized agents for those retailers also get something too.
Jackpocket profit and revenue
Jackpocket has not released any official reports in regard to company earnings.
Note: Because Jackpocket is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.
What is the Jackpocket business and revenue model?
Jackpocket makes money through a few revenue models that they combine within their company, they are:
- Fee for service (FFS) business model
- Commission based business model
- B2B2C (partnerships) business model
- Business to business (B2B) business model
Jackpocket funding, net worth, and valuation
According to Jackpocket’s Crunchbase profile, Jackpocket has raised $199.6 million over 9 rounds and has a post-money valuation between $500 million to $1 billion as of November 2021.
Jackpocket subsidiaries, acquisitions, and exits
To date, Jackpocket has not made any acquisitions, investments, or exits.