Halifax-based Karma Gaming, which develops video games for regulated lotteries, has added to its Series A round of venture capital with a $1 million funding from Vanedge Capital in Vancouver.

The funding, Vanedge’s first in Atlantic Canada, is an addition to the $4 million first closing announced in June, bringing the total for the A round to $5 million. The first closing of the round included $2.5 million from Rho Canada Ventures, the Canadian arm of Rho Capital Partners, which has offices in Palo Alto, Calif., New York and Montreal, and $1.5 million from Innovacorp, the Nova Scotia innovation agency.

Karma has signed deals in Australia, Mexico, Canada and the U.S., and will roll out its first product with the Georgia State Lottery in the U.S., likely in December. The company has pioneered video games for regulated lotteries, but the regulatory, technical and commercial complexity of the deals creates a long turn-around time. The funding will help to accelerate development and cover corporate operations until revenue begins to roll in.

“We were immediately taken by Karma’s plans to help update the lottery industry,” said Paul Lee, partner at Vanedge Capital. “The lottery industry sits on the brink of a paradigm shift towards the web and mobile with new and exciting customer offerings and experiences. Karma’s placement at the forefront of that transformation makes it a very exciting time to help guide and shape the evolution of lottery experiences worldwide.”

CEO Paul LeBlanc said in June the A round funding will help the company to expedite its sales pipeline and to double its staff to about 20.

Karma has devised a solution for a problem that afflicts regulated lottery companies around the world: their clientele is aging, and young people are not interested in buying weekly lottery tickets. So the company is developing video games that will include a modest cash prize. In September, Karma signed an agreement with Brisbane, Australia-based lottery operator Jumbo, under which the Halifax company will launch an interactive game that users could play to pick lottery numbers.

CTO Jay Aird said recently Karma has since signed three more major clients.

The startup had previously received about $1.2 million in seed financing from a selection of angels, including $250,000 from Groupon CTO and Dalhousie University alumnus Paul Gauthier. It has leveraged those investments with loans from the Atlantic Canada Opportunities Agency.