Dive Brief:
- 7-Eleven has selected Jackpot.com as its online lottery courier service, starting with over 600 stores in two states, the tech company announced on Thursday.
- Through the agreement, 7-Eleven’s customers in Ohio and Massachusetts can sign up with Jackpot.com to play lottery games and scratchers through their phones and computers.
- Lottery sales are a reliable source of income for c-store operators that offer it, with retailers making about 5% on each purchase along with bonus commissions for selling winning tickets.
Dive Insight:
While online lottery promises to make buying tickets more convenient for customers, retailers may miss the foot traffic brought by people physically buying them in their stores. The average c-store made about $2,355 per month in operating income from lottery in 2022, according to NACS data. However, NACS also reported that about 95% of people who come into c-stores to buy lotto tickets also purchase other items.
As part of its latest agreement, 7-Eleven will put signs about Jackpot.com in the associated stores, as well as add links in its app and website, a spokesperson for Jackpot.com said. Users can then buy tickets and receive winnings of up to $600 directly through the app. For wins of more than $600, Jackpot.com will send the customer the winning ticket to turn in.
"We're thrilled to work with 7-Eleven, the leading retailer of lottery tickets in the country," said Akshay Khanna, CEO and co-founder of Jackpot.com. "Leveraging our technology and innovation, we can provide additional convenience for their customers, while adding an additional source of revenue."
Jackpot.com’s digital offerings are currently available in Colorado, Massachusetts, Arkansas, New Jersey, New York, Ohio and Texas, meaning 7-Eleven can expand the partnership into five more states if it bears fruit.
