The Current: Jackpocket Leaves Another State After AG Opinion

The lottery courier had served New Mexico under an agreement with the lottery. While NM might not be a huge loss, it's more negative momentum for the niche industry and a recent DraftKings acquisition

Mar 04, 2025

The bad news cycle for online lottery couriers continues, as New Mexico Attorney General Raúl Torrez issued an opinion saying that Jackpocket should not be serving the state, at least not without changes.

Jackpocket had been operating under a memorandum of understanding with the NM state lottery. The lottery courier has stopped serving New Mexico and offered The Closing Line a statement from Peter Sullivan, SVP, Lottery at DraftKings:

“After receiving a copy of an opinion from New Mexico Attorney General Raúl Torrez, which was requested by tribes in New Mexico, Jackpocket has temporarily suspended lottery courier operations in the state. We are exploring options and avenues to find a resolution to this matter.”

You can see the full opinion here.

The news comes as Texas recently banned online lottery couriers.

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Here’s the conclusion from the New Mexico AG:

The Memorandum of Understanding between the New Mexico Lottery Authority and Jackpocket constitutes the authorization of internet gaming in New Mexico. As such, it triggers the renegotiation required by Section 17 of the Indian Gaming Compact between New Mexico and the Tribes.
Moreover, the MOU appears to run afoul of New Mexico law as described above. Jackpocket’s continued operation in New Mexico is therefore subject to challenge.

The full MOU is not available, but the AG opinion summarizes it:

Jackpocket entered into an MOU with the NMLA in March of 2022. Under this MOU, Jackpocket provides a “courier service” pursuant to which “a person physically located in New Mexico accesses a mobile device application and places an order for Jackpocket to physically purchase lottery tickets on the person’s behalf[.]”

Jackpocket wasn’t working covertly in New Mexico; here’s a press release from 2022 announcing its launch on top of the MOU.

Impact on the lottery courier industry

The direct impact is relatively muted:

Jackpocket appears to be the only operator operating under an MOU in the state.
The loss of the New Mexico market — 2 million people — is a small part of Jackpocket’s addressable market/

The bigger concern is the momentum against lottery couriers, which has quickly gained steam.

The New Mexico AG opened up two fronts that could be of concern for couriers and the states where they operate (or where they want to operate):

The actions by the state lottery are triggering a reopening of the state compact with gaming tribes in the state. Every compact and state law is different, of course, but there’s at least a possibility this could create more pushback in any state with both tribal gaming and lottery couriers. Tribal pushback may hinder further expansion, if not lead to contraction of the addressable market.
Inasmuch as state lotteries are giving tacit or explicit authorization, there’s a potential for more states to examine the intersection of the lottery courier industry and state law/a lottery agency’s remit.

Five reasons why ESPN Bet never had a chance (Awful Announcing): I wrote this one for my friends over at AA. “There are worse times for changing over a sportsbook than what Penn executed. But the timing was definitely suboptimal.
Penn moved off Barstool Sportsbook and announced the ESPN deal in August 2023. ESPN Bet went live in late November of 2023. That left months of a ‘zombie’ Barstool Sportsbook that was a placeholder for the new brand. Penn more or less missed out on the first three months of the football season.
If Penn had wanted to move off of Barstool to ESPN, it arguably should have planned a relaunch that coincided with the start of a football season. That’s by far the most crucial time for customer acquisition in sports betting.”
Stitt vows to veto Oklahoma sports betting bills that give tribes exclusivity (KOSU): “In a press conference on Wednesday, Gov. Kevin Stitt reaffirmed his stance on sports betting. He wants it for the state minus tribal involvement. ‘Some of the bills that you're seeing come through, which I'm not supportive of, and I would absolutely veto any of the bills that hit my desk that are exclusively giving a monopoly to the tribes,’ he said. ‘That's not transparent, that's not a fair deal. Not everybody can do it.’ Stitt wants a “free market” for sports betting that benefits Oklahoma taxpayers. ‘They're sovereign nations, they’re a separate government (and) they're coming in and hiring lobbyists to come say what's good for their nation, and not what's good for the taxpayers of Oklahoma,’ he said. ‘I'm always going to stand for what's good for the taxpayers of Oklahoma, and I think we need more of a free market accountable system.’”
BetMGM to lay off 83 workers at Jersey City headquarters as sports betting market slows (Bergen Record): “BetMGM, one of the nation’s largest online gambling companies, will lay off 83 employees at its headquarters in Jersey City, as it copes with slower growth in the sports betting industry. The layoffs are set to go into effect on May 27, said a public notice the company filed in late February with the New Jersey Department of Labor.”
- The news is perhaps surprising and not surprising. BetMGM has carved out a solid No. 3 position in the US sports betting industry behind DraftKings and FanDuel. But it has also not been able to grow its share of the market after establishing itself as the leader of the second tier of online sportsbooks.
- The focus shifting away from sports and to online casino also shows up in a new marketing effort from BetMGM. Presser from MGM here. “BetMGM, a leading sports betting and iGaming operator, is premiering its first online casino commercial featuring company brand ambassador Jamie Foxx. Debuting March 4, the 30-second spot entitled ‘Vegas Lights’ showcases the relationship between the award-winning online casino and MGM Resorts International, with Foxx using the BetMGM mobile app to illuminate iconic Las Vegas experiences with each successive tap.” You can watch the spot below:
DraftKings Announces Close of $600 Million Upsized Term Loan B Facility (DraftKings): “DraftKings Inc. today announced that it has successfully closed on its senior secured term loan B credit facility in an aggregate principal amount of $600 million. The size of the Term Loan B was increased from the previously announced $500 million aggregate principal amount due to strong demand. The Term Loan B will mature in March 2032 and has an interest rate equal to the Secured Overnight Financing Rate (SOFR) plus 1.75% per annum. The Term Loan B was offered at 99.50% of par and is required to be repaid at 1.00% of its aggregate principal amount per annum. DraftKings will utilize the net proceeds of the Term Loan B for general corporate purposes.”

Ifrah Law has been at the center of advancing iGaming in the U.S., shaping groundbreaking legislation, leading precedent-setting cases, and guiding clients that span the iGaming ecosystem through every phase of their business journey. Learn more at IfrahLaw.com.

Woman-Owned Sportsbook Owner Leads Push For Historic Horse Racing In Maryland (Casino Reports): “For Alyse Cohen, the stakes couldn’t be higher.
The owner of Long Shot’s, a Frederick-based off-track betting facility (OTB), is leading a coalition in a legislative effort to bring Historic Horse Racing (HHR) machines to Maryland’s OTBs. ‘I’m really trying to get the word out there as to why we think HHR is the appropriate next step in Maryland gaming,’ Cohen said. …Cohen anticipates resistance from Maryland’s casino operators, who she expects will oppose the measure despite her argument that OTBs wouldn’t significantly impact their business. In Kentucky, Churchill Downs has embraced HHR, launching seven HHR-driven entertainment venues.”
- You can also listen to a podcast with Cohen talking about the push for HHR’s here.
GeoComply welcomes Kip Levin as CEO (Geocomply): GeoComply, the global leader in geolocation security and fraud prevention, today announced the appointment of Kip Levin as its new Chief Executive Officer, effective Tuesday, March 4th. This strategic move reinforces GeoComply’s commitment to delivering cutting-edge solutions and driving success for its customers. Kip Levin brings a wealth of experience to GeoComply, having served in various senior leadership roles at Flutter Entertainment over the past decade including CEO of the US business and President of FanDuel. Prior to that he spent 12 years at Ticketmaster where he led the product and ecommerce teams and oversaw the company’s expansion into mobile and resale. His proven track record in driving growth and innovation within dynamic, technology-driven markets positions him to enhance GeoComply’s ability to serve its customers. This transition allows co-founder Anna Sainsbury to step into the role of Executive Chairman, where she will focus on strategic vision and governance, ensuring GeoComply continues to anticipate and meet the evolving needs of its customers. Co-founder David Briggs will shift his focus to Product and Innovation, leveraging his expertise to drive cutting-edge solutions as he moves from his previous role as CPTO.”
OddsMatrix grows micro-market coverage with Kero Gaming integration (Press release): “OddsMatrix, EveryMatrix’s sportsbook and odds feed business, has further enhanced its premium sports content offering by partnering with micro-markets provider Kero Gaming. The collaboration will see OddsMatrix integrate Kero’s suite of traditional and contextual football led micro markets into its sportsbook and feed coverage, with basketball, baseball, and American football to follow later this year. These rapid micro-markets will broaden OddsMatrix’s coverage of 170,000+ monthly live betting events and 650+ bet types across its ‘always-on’ sportsbook.”
NCPG offers new theme for Problem Gambling Awareness Month (SBC Americas): The National Council on Problem Gambling (NCPG) is making a concerted effort to promote Problem Gambling Awareness Month (PGAM).
March 1 marks the beginning of PGAM providing the NCPG with the opportunity to further reduce the stigma of problem gambling while providing access to a slew of resources. ‘PGAM is intentionally aligned with the NCAA basketball tournament, a time when gambling is a frequent topic of conversation,’ said the NCPG. ‘March is a prime opportunity for organizations to promote a better understanding of what is and isn’t true about problem gambling. As millions of people engage with the tournament, it offers a unique moment to raise awareness about the risks of gambling, educate the public, and challenge common misconceptions.’
Senator Supports NJ Sports Betting Tax Hike (Legal Sports Report): “Sen. John McKeon said last week he supports Murphy’s tax increase included in a recent budget proposal. The budget nearly doubles both the tax rate for NJ sports betting and online casino gambling from 13% and 15%, respectively, to 25%. ‘The issue of raising these tax rates has been something I have championed for over a year now, so I commend the governor for recognizing the revenue-generating potential of these rapidly growing industries for our state,” McKeon said in a statement.'“
Poll on sweeps says sweeps are good: Eiliers & Krejcik Gaming released new polling (paywall, $1,000 report) on sweepstakes casinos and sportsbooks that took stock of user sentiment. Statement from the Social & Promotional Games Association summarizing some of the findings: “Social casino games are an entertaining, interactive, and social experience enjoyed by millions of American adults alongside other popular casual mobile games like Clash of Clans and Candy Crush. A survey of social sweepstakes users by independent research firm Eilers & Krejcik Gaming reinforces this fact. When asked to describe their motivations in their own words, social sweeps players cited general entertainment value and excitement/thrill more frequently than winning real money.”
- The sweepstakes industry seems to be banking on the idea that sweeps are not competitive with online gambling, and hoping that will lessen interest in banning it or regulating it as a comp for an online casino or sports betting product. Time will tell if that’s a winning argument. Some operators have started leaving the states with legal online casinos specifically to avoid any friction on this front.