Are you wondering what JackPocket is? JackPocket is a Lottery game you can enjoy from the comfort of your house. While entertaining yourself, you also find a chance to win actual real-world money. With an easy and secure platform, you can order tickets for PowerBall, Mega Millions, Pick 3, and many more from state licensed retailers.
This lottery app allows you to try your luck at earning some dollars and practicing your gambling skills. It has an overwhelmingly positive response from users, with over 75,000 ratings and 4.7 out of 5 ratings on the App Store.
Founded in 2013, JackPocket quickly evolved into becoming the third-party iLottery App in the United States, offering eight different ways for its payments, including Paypal, Bank Account Transfer, E-Checks, Play+, Debit Cards, Credit Cards, Apple Pay, and Venmo, depending on the state you are in.
Who can use JackPocket?
Even though officially it is rated to be for 17 years or older, some state laws restrict you to being 18 years old to use this app. After registering, your age is confirmed via identification cards or driver’s license to confirm your account.
It is available in English and Spanish and can be used on Android and IOS devices. The app is only available in certain areas, including Arkansas, Colorado, Minnesota, New Hampshire, New Jersey, Ohio, New Mexico, New York, Washington D.C, Texas, and Oregon.
Also, your location is tracked, so you can only play lottery games in your own state, and it is obligatory to have your location turned on if you participate in a lottery to ensure this.
Does it take a cut of your winnings?
Many of you might be wondering what the catch is and how exactly JackPocket generates its revenue if these games pay you in cash just for “playing”, well the answer to this lies in the generational model, commissions, and service fees.
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What exactly is Service Fees and Commission?
Initially, JackPocket generates its revenue by its service courier fees of around 7-10; these, in layman’s terms, mean the money used in buying and storing the user’s lottery ticket. This is also known as the FFS Fee For Service business model.
After collection of this charge, the order is placed to a licensed lottery retailer, and tickets are secured in a restricted vault. The employees and ticket operators responsible for the safekeeping of said tickets are also most likely to receive a commission for every ticket.
For confirmation of the secured ticket, to provide the user with some peace of mind, the ticket’s serial number is emailed to them, and a scanned copy is also available on the app. These charges are commission based, so they are not fixed and vary accordingly in regard to the ticket prices.
Why is it Charged?
This is significant for the income of JackPocket itself as there are no signing-up fees, so mostly from the service charge of around 7-10%, depending on the actual ticket purchase. This is also important as the commission earned varies highly depending on the state and its lottery ticket prices, as well as the number of players.
For example, Pennsylvania earns JackPocket about 20% in commission while Massachusetts offers around 15% in regards to its commission charges. It is hence important to note that JackPocket is a retailer’s authorized agent to accept payments, not the retailer itself.
What is its Business Model?
The business model of JackPocket, if broken down, can be seen as follows: Each game has several tickets, with each purchased ticket and its slip generating income; this is also combined with the entry fees for the game, which can range depending on the game itself and usually is around 0.8 dollars for Mega Millions and 10 dollars for a PowerBall Game. So conclusively speaking, there are charges but not the conventional ones like monthly subscriptions or taking a cut of the winnings of the player.
Generally speaking, the traditional lottery system also includes commission fees to retail partners and distributors. JackPocket also does something similar by splitting its commissions of ticket sales with its partners in a contractual manner that isn’t necessarily transparent or publically available.
There is also a commission paid to JackPocket by the states it is functional in as eligible users in some states use JackPocket App to take part in their state’s lottery offerings.
Certain states also offer opportunities to play in pools with other people for opportunities to improve your odds of winning. If a ticket within your pool wins, the winnings are split evenly between all members of the pool.
Paid or Promotional Partnerships?
Some of these more recent partnerships, in 2021 and 2022, include universities and sports organizations like the New Jersey Devils and Dallas Mavericks with the introduction of specialized prizes like private access to the team’s practice arena and, of course, tickets to different sports matches.
One of the most significant partnerships proved to be one with ESPN NY Sports recently in August 2022, gaining the game’s incredible promotion.
This collaboration helps maintain its youth-centric audience (with 75% of the users being under 45) and sustains its tech enthusiastic younger demographic, keeping the business flourishing. This business model revolving around partnerships is known as B2B2C.
What are its Revenue Figures?
As it is a private company, JackPocket is not obliged to publicize any of its revenue in terms of figures; however, it is known that in the recent pandemic, Jack pocket’s value had drastically increased to 620 million dollars.
With the shifting of the world towards virtual methods, states’ incomes in regard to lottery programs decreased, pushing them towards more modernized methods, including JackPocket, which nearly became 4th of its original price.
JackPocket hence proved to be the perfectly designed app complying with the needs of the times and remains so to date with almost 2.5 million users.
This number is likely to keep on growing as the general idea around the gambling industry is that it sustains its former gamers while attracting new probable ones; this will end up in further progress of the app and a great increase in revenue every year in the future.
The consistent growth helps in the increase of the prize pool every year, with the recent 2021 lottery winner receiving 75 million dollars. There is, however, a catch in regards to the prize, and it’s the amount, as the money earned if it exceeds $600 has to be physically collected by the user themselves.