Jackpot, a soon-to-launch app for buying lottery tickets, announced last week that it had raised $35 million in its first funding round, backed by a host of top professional athletes and sport ownership groups.
Why is this important: The gamification of gambling, in all its forms, has become a growing business fueled by governments, professional sports and venture capital – all eager to usher in a newer, younger pool of bettors.
Driving the news: Jackpot, which offers the convenience of purchasing a lottery ticket from your phone, seeks to increase annual state ticket sales by $100 billion.
- Its objective is to develop the lottery by making it a “form of entertainment” and by attracting the youngest.
- Its competitor, Jackpocket, has been doing just that since 2013. Its annual sales have grown more than 400% in the past two years, with more than 7 in 10 of its million users under 45, the average age. of a lottery. player, according to Forbes.
Meanwhile: Mobile betting is also shaking up sports betting, long shunned by professional teams for fear that it will compromise the integrity of their games.
- But attitudes have turned 180 in recent years, particularly as in-game prop betting – facilitated by intuitive and sleek mobile platforms – has been shown to amplify audience engagement.
- Sports betting commercials are now commonplace at professional games in all major leagues – MLB, NFL, NBA and NHL – on television and in arenas.
- Professional athletes now regularly sponsor or even invest in platforms that facilitate betting.
The result: The legal sports betting market in the United States doubled last yearat over $52.7 billion wagered.
State of play: All this continues to attract young customers. Similar to trends seen in the online lottery, more than 6 in 10 sports gamblers are 40 years or less.
- And they do it more frequently.
- 1 in 5 respondents to a December Morning Consult poll said they bet on sports at least once a monthan 80% increase in the number of participants compared to the previous January.
The bottom line: Gambling is big business. Massive government and corporate revenues are hard to resist. The same goes for the game, especially when it’s made so easy.