AutoLotto Raises $2.4 Million for Mobile Powerball App

The AutoLotto app lets users buy and redeem lottery tickets via their smartphones.

AutoLotto Inc. has raised $2.4 million in seed funding for its mobile app that lets people buy, play and redeem lottery tickets, all on a smartphone.

The app has been operating in private beta with a limited number of people using it. It will become available for the public in New Hampshire before the end of November.

First-time AutoLotto users are asked to verify their identity and age by giving the company such information as a credit card number and a phone number.

A player can pick lucky numbers or have the app generate numbers for them. People are notified if their ticket is a winner and don’t have to keep track of a physical ticket or check numbers.

Those using the app have to enable location services while they are purchasing a ticket, that AutoLotto can discern the person’s whereabouts. That is because lottery tickets in the U.S., by law, cannot be purchased across state lines.

Investors in AutoLotto’s seed round included 500 Startups and Aurum Partners, an investment vehicle led by executives with the San Francisco 49ers . The company is also a graduate of the 500 Startups accelerator.

Founded in March 2015, AutoLotto plans to make its app available in every state that has a Powerball draw lottery game. It also plans to roll out new features, such as pooling, to let groups buy tickets together, and if they win, automatically divvy the winnings according to each player’s contribution to the purchase.

An investor with Aurum Partners who is also the president of the 49ers, Paraag Marathe, said he expects AutoLotto to not only capture a share of lottery players who buy paper tickets today, but to grow the lottery market by drawing in younger users.

Read VentureWire for the full story on AutoLotto including how the startup works with the traditional lottery industry.