Coloradans can hold off searching for coins on the couch and take one less trip to the gas station for a scratch-off ticket. The mobile gaming app Jackpot.com was launched in the state in November.
The mobile app allows lottery players to buy statewide and national games from their phones.
“We've seen a lot of success in other states. Colorado has surpassed that,” said Jackpot.com CEO and co-founder Akshay Khanna. “So we are incredibly excited to see the progress that I believe we're going to see in the coming weeks and months in the state.”
Khanna wouldn’t disclose Jackpot.com’s revenues.
It was launched in Texas last year. Along with Colorado, the online platform is available in Ohio, New York, Massachusetts, Arkansas and New Jersey. There is no centralized headquarters for the business. But, it does have a retail center in Aurora. Khanna said the goal is to eventually be available in all states.
Those wanting to buy a digital game can also go to the website to purchase national games like Mega Millions and Powerball and statewide games like Cash 5, Pick3, and Lucky 4. But, Jackpot.com isn’t just a place to buy lottery games. The app also handles claims of winning prizes.
“What that means is people are buying tickets, they're winning, but they either lose their ticket or they forget to check their numbers, or they check it for the wrong draw, and that's it. Your winnings are gone,” Khanna said. “So we handle all of that for you, not only the ordering of the ticket, not only the processing of the scan but also checking to make sure that your numbers are the winning numbers.”
After going to the website or downloading the app, consumers must register an account. They must also go through a series of third-party verifications to make sure they are over 18 years old. After selecting tickets and numbers, Jackpot.com is responsible for getting the ticket scanned and uploaded to the app or desktop account.
The online platform does charge a fee between the high teens to 20 percent at the point of deposit into an account. Jackpot.com doesn’t collect any of the winnings. But, it deposits those winnings back into the account.
The Colorado Department of Revenue considers Jackpot.com as a courier service. That means it is a delivery service similar to Instacart or Uber Eats. Instead of delivering food, they deliver lottery tickets. Unlike licensed lottery retailers, they are not affiliated or working on behalf of the Colorado Lottery. The courier must go through a licensed Lottery retailer and then the courier’s digital image of the ticket goes back to the player.
While the Colorado Lottery doesn’t regulate couriers, it does regulate retailers and a courier cannot operate without a retailer. Retailers who sell tickets to the couriers are held to the same standards as they are for sales to other consumers. The Lottery Commission is in the process of considering some additional rules that would apply to retailers who sell to couriers, which are likely to go into effect in early 2025.
Khanna said Colorado can expect the app to have more presence in the state.
“You will definitely see us advertising in Colorado,” Khanna said. The Colorado Lottery is coming off a record fiscal year in 2023. It generated nearly $890 million. According to the Colorado Auditor’s Office, that’s a 34 percent increase since fiscal year 2020. That’s the highest amount of annual ticket sales to date.
The lottery’s revenue goes towards state parks. In its 40-year history, it has returned more than $4 million to outdoor projects.
