Jackpocket lottery app hits first download on Apple with $1 billion prize from Mega Millions

ByLance T. Lee

Jul 28, 2022

On Thursday morning, with the Mega Millions prize of over $1 billion, a lottery app became the number one most downloaded free app in the entertainment section of the Apple Store, beating… TikTok.

Jackpocket, recently backed by Mark Cuban, Kevin Hart and Manny Machado as part of the company’s $200 million raise, has proven irresistible.

People no longer need to go to delicatessens or supermarkets to play the lottery; they can play it all at the push of a button.

And push they have.

The company claims that since April 17, when the current streak of no-wins began, tickets purchased on Jackpocket tickets have accounted for 7% of all Mega Millions tickets purchased. It’s mind-boggling to consider when you learn that JackPocket is only in 12 states. In Arkansas, 10% of all tickets in this section were purchased on this app.

The floodgates opened in 2018 when New Jersey became the first state to allow a courier to secure lottery tickets for for-profits.

Here’s how it works.

A user uploads his wallet to Jackpocket and purchases lottery tickets. If they choose the quick pick, Jackpocket’s own randomizer does the work. A Jackpocket representative is then assigned to fulfill that order with an in-state retailer. When this order is fulfilled, the customer receives a scan of the front and back of the ticket with a serial number and a watermark.

Courier rules include the provision that a courier can never become a retailer, which protects the interests of current sellers. The fact that the terminals that serve couriers are different from those used for walk-in trips ensures that people sitting at home do not have an advantage and allows for easier verification.

Couriers also cannot take a percentage of their customers’ winners and must notify winners of any denominations within 24 hours.

To try out the service, I ordered 26 Mega Millions Quick Picks for $52 at 10:25 a.m. ET. About six hours later, my tickets arrived, filled at the Utopia Deli in Hewitt, NJ.

If someone wins less than $600, Jackpocket puts the money back into the account. If a player wins more, he receives the ticket from the company and must collect it himself. Legally, not being allowed to pay the big prizes is a way to get a good deal, as Jackpocket only receives new revenue (a healthy 9%) when a player tops up their wallet.

As a private company, JackPocket did not disclose its revenue.

Not only do they have reload fees, unlike mobile sportsbooks, but they are also allowed to suggest auto bets.

After spending my $52, Jackpocket asked me if I wanted to spend $52 each time – a dangerous proposition. And getting into push notifications is another way to bring the customer back. Sportsbooks try it with the lure of reload bonuses, while Jackpocket has the lure of hundreds of millions of dollars, a price they themselves don’t have to pay.

For its part, the company says it helps limit problem gambling by allowing customers to set their own settings, but the autoplay option seems like a bit of a runaway train considering the lottery odds.

Playing the lottery more does not increase your chances. Purchasing multiple tickets in a single lottery may depend on the number of tickets purchased by others.

Unsurprisingly, Jackpocket says more tickets are purchased when a lottery prize hits $300 million. In the case of last week, there was a 200% increase in tickets sold compared to the previous week, when the price exceeded $800 million.

Jackpocket has just started taking advantage to get in front of sports bettors. This year he signed sponsorship deals with the Texas Rangers and New York Mets.

The company, thanks to the reloading income and no loss of its own money, seems to be a much healthier business than many sportsbooks. And if a jackpocket winner hits the jackpot — their best win was a consumer who won just over $9 million — that marketing could propel the business to even greater heights.

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