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The popular lottery courier service app Jackpocket has suspended its service in New Mexico until further notice.
The move was prompted by a legal opinion issued by the New Mexico Department of Justice, which called into question the legality of Jackpocket's operations in the state.
Suspended until further notice
In the opinion issued on February 26, New Mexico's Attorney General Raúl Torrez argued that Jackpocket sells lottery tickets at a profit without official permission from the state. Additionally, online gaming violates previous agreements between the state and local Native tribes, according to the opinion.
Jackpocket, which sells state lottery tickets to users online as a third party courier, announced that it would suspend operations in New Mexico while authorities formulate a solution.
The app, which is owned by betting conglomerate DraftKings, had previously operated under an agreement with the New Mexico Lottery Authority. That agreement is being challenged.
According to the New Mexico Gaming Control Board:
The State of New Mexico, and the New Mexico Gaming Control Board do not…endorse or approve any Internet or online gambling, betting activity, wagering or any aspect thereof. Any statement, reference or opinion to the contrary is wrong. Such activity is strictly prohibited and not authorized, approved or sanctioned in any manner by New Mexico regulatory authorities.
Following in Texas's footsteps?
New Mexico is the second state in the USA to drive Jackpocket to suspension. The app ceased operations in Texas last week when officials moved quickly to ban courier services in the state.
The Texas Lottery Commission proposed amendments to ban courier apps in the wake of an $83.5 million Lotto Texas win in Austin. An investigation alleged that the winning ticket was purchased on a courier app and then printed at a retail outlet that was also owned by the app, spotlighting unregulated practices.
The Texas Senate voted unanimously this week to ban courier sites.
The courier takeover
Jackpocket is still available in 17 states and Puerto Rico. It is one of the most widely used courier services for state lotteries and scratchoffs.
Overall, Jackpocket - and courier services like it, including Mido Lotto, Lotto.com, theLotter, and Jackpot.com - have expanded in the last few years, cutting through extensive state red tape to make online lottery play a reality.
Online courier services allow players to purchase tickets and choose numbers for a variety of games. They work with licensed retailers and retain physical tickets on behalf of the user, providing online updates and notifications.
Couriers are independent corporations not directly affiliated with the state lotteries, which have their own regulated sites. On the road to legalization, courier services must align with state lottery commissions, retail licenses, gambling authorities, tribal agreements, regular state laws, and other authorities.
Some states such as Utah and Hawaii feature all-out bans on online gambling, while others such as Connecticut and New Jersey embrace it. However, courier services are relatively new trends in the country that often touch on legal gray areas, setting the stage for battles ahead.
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