Regulatory Review: Lottery Courier Services in the US

Lottery courier services are third party companies that enable consumers to purchase digital lottery tickets through mobile accounts or applications. Couriers fulfil lottery ticket orders on behalf of their patrons from licensed state lottery retailers, the latter of which is typically unaffiliated with and independent from couriers. In this blog, we take a look at lottery courier services in the United States and give you a glimpse of some of the applicable regulatory framework in states where lottery courier services are explicitly regulated and subject to licensing conditions.

What's the State of Regulatory Activity for Lottery Courier Services Across the US?

Much like other forms of gaming, state regulators have the authority to either explicitly regulate or prohibit such lottery courier services. However, such services are unregulated in most states – that is, not addressed by state law or regulations.

• Lottery couriers are live and regulated in just two states – New Jersey and New York – where lottery couriers are required to be registered and licensed, respectively. Couriers in both states are subject to traditional licensing conditions such as age restrictions, age and location verification, promotional and advertising restrictions, and responsible gaming measures, among other things.
• Jackpocket and Lotto.com are currently registered in New Jersey, whereas Jackpocket, Lotto.com and Jackpot are licensed in New York.
• Lottery couriers are operating, but unregulated, in 17 states and the District of Columbia. Active lottery couriers include Jackpocket, Lotto.com, Mido Lotto and Jackpot. 
• A handful of state regulators and commissions are skeptical of the legality and ethics of lottery courier services. In 2021, the California Lottery, which has been perhaps the most outspoken state regarding lottery couriers, announced that such services violate state laws and regulations. The lottery further warned that any licensed retailer that knowingly participates in or facilitates lottery courier ticket sales would be subject to contract termination. Meanwhile, the Colorado Lottery performed an audit of its lottery in November 2023 and found that unregulated lottery courier services do not have sufficient oversight from the state lottery. The Texas legislature in 2023 considered a bill which would have prohibited play and facilitation of play of a lottery game by telephone or on the internet,  effectively banning lottery courier services.
• Few states are considering legalizing and regulating lottery in 2024, including Alabama, where a gaming package and corresponding constitutional amendment are up for discussion, and Massachusetts, where legislators will consider whether to establish an online lottery. 

This is just a glimpse of what's inside our latest Vixio GamblingCompliance U.S. Regulatory Review: Lottery Couriers, which examines lottery courier services in the United States and provides an overview of the applicable regulatory framework in states where lottery courier services are explicitly regulated and subject to licensing conditions. Vixio subscribers can read the full report.

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