Couriers are a hot-button issue in the lottery industry.
While some are opposed to these third-party services, others are embracing what they bring to the table.
New Jersey is one state that welcomes couriers into its borders, partnering with four different ones currently.
As NJ works toward becoming one of the states with online lotteries in 2025, couriers will remain a part of the fold.
According to Missy Gillespie, Chief Communications Officer for the New Jersey Lottery, the state’s working relationship with couriers provides secure sales of NJ Lottery tickets:
“By working with couriers, the New Jersey Lottery aims to protect players from unregulated and unregistered companies. Some protections include safeguards such as age verification software, requirements of cybersecurity protocols to defend players’ data, ensuring that actual tickets are being purchased for players, and that tickets are not sold to players outside the state of New Jersey.”
NJ runs regulated market with lottery couriers
Currently, New Jersey has agreements with four different couriers. They are Jackpocket, Jackpot.com, Lotto.com, and theLotter.
These third-party services offer online sales of New Jersey retail lottery draw games.
While couriers have operations in 21 different states right now, not all are eager to welcome them in.
California has taken a stance against the industry, stating it will not award prizes to anyone it discovers using a courier to purchase a winning ticket.
Other states are working toward language to ban these couriers from operating in their locations.
Texas, a state with five active couriers, is getting increased pressure from lawmakers to act against them.
The main concern for opposing states is a lack of regulation.
New Jersey has erased that issue with the Lottery Courier Act, which was passed in 2016 by the state legislature.
This law enables a person or business entity registered with the state lottery to purchase tickets on behalf of individuals who are located within state borders at the time of the order.
These third parties can deliver winning tickets to those individuals as a “for-profit” service and provide other concierge services.
It is illegal to operate a courier service in NJ without being registered and authorized by the New Jersey Lottery.
Couriers also can’t become licensed retailers, thus protecting the retail stores that were concerned about losing business.
As Gillespie notes, the New Jersey Lottery has the ability to govern the operations of couriers and enforce different regulations, as well:
“The regulations governing couriers include their service systems, such as their website and mobile applications, internal controls, the protection of customer private information, rules regarding prize redemption, insurance and bonding requirements, responsible gaming requirements, ticket fulfillment, as well as audit and financial reporting.”
Draw sales see slight growth in New Jersey for FY24
The question many ask is the impact that couriers have on business.
A report from Eilers & Krejcik Gaming showed that they accounted for less than 1% of US lottery sales in 2023.
However, as the couriers and Gillespie state, they introduce a new player to the lotteries they work with:
“It appears that these new lottery players, who are more comfortable making purchases online, are essential to the sales diversification and success of the lottery.”
The New Jersey Lottery wasn’t able to provide any sales data on the couriers’ work for the state.
However, NJ is coming off a FY24 where it produced $3.6 billion in total sales, a drop of 2.5% year over year.
Despite the overall decrease, draw game sales were up 1.1% to $1.75 billion. It was a 6% decline in scratch ticket sales that impacted the overall total.
Couriers do not offer scratch tickets in New Jersey.
Also, it should be noted that theLotter and Jackpot.com both began working with New Jersey in the later stages of FY24.
iLottery arrival won’t keep couriers out of NJ
Part of the reason states look to couriers is because they don’t have legalized online lottery options.
That won’t be the case for New Jersey for very long.
The state has been authorized for the launch of sales through the internet and mobile lottery apps since 2022. However, the process of getting iLottery up and running has been slow and met with obstacles from legislators.
It was believed that an online lottery would finally be launched sometime in 2024. But, the state confirmed with PlayiLottery in May that it wouldn’t be coming this year.
With 2025 now the target, Gillespie says that once iLottery is operational, it won’t impact the status of couriers in the state:
“No, (couriers won’t be banned once iLottery begins). The New Jersey Lottery offers a wide portfolio of games and ways to play, including through couriers. Couriers have been operating successfully in New Jersey since 2019, and have built their own relationships with players. Couriers can offer players things the New Jersey Lottery will not offer players through their marketing and promotions efforts, and their relationships with other forms of gaming and entertainment.”
As New Jersey seems to have found a harmonious relationship with couriers, it could be a blueprint for other states to follow.
Photo by Dana.S via Shutterstock
Graphic from the New Jersey Lottery
About the Author
