TheLotter becomes fourth lottery courier to enter New York market

TheLotter becomes fourth lottery courier to enter New York market
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Malta-headquartered lottery courier service TheLotter has launched in New York, its fifth U.S. state of operation.

TheLotter is the fourth lottery courier to step foot into the Empire State, after Jackpot.com, DraftKings-owned Jackpocket and Lotto.com.

TheLotter first launched in 2002 in Europe, meaning it has been around for years longer than its competitors. But whereas Lotto.com, Jackpocket, and Jackpot.com are increasingly renowned names in the U.S., TheLotter has a comparatively smaller and more recent presence than the others.

The brand made its American debut in Texas in 2020, launched in Oregon later that year and added Minnesota in 2022. In the last few weeks, it added New Jersey, going live in the Garden State at the start of June just a week after Jackpot.com had also entered the state.

Just three weeks later, it expanded next door to move into New York, where the lottery market generates $8.3 billion in annual sales, making it one of the most lucrative lottery markets in the country.

New York also has a unique layer of competition for these courier apps as it is the only state in the country in which the state-run lottery offers online lottery sales directly from its own platform. The state also only allows draw games, meaning that scratch tickets are unavailable. TheLotter will offer the likes of Powerball and Mega Millions games to residents as well as some other local draws.

“Our launch in New York marks another significant milestone for theLotter,” said Peggy Daniel, The Lotter’s U.S. general manager. “As someone who grew up in the tri-state area, I am immensely proud that our company has been licensed as a lottery courier in the state. We are thrilled to be able to continue extending our services into additional states in the coming months.”

Lottery couriers gaining traction

Like its competitors, TheLotter works by purchasing lottery tickets to order from the retail partner on the player’s behalf. Small prizes (Daniels says the cutoff is $600) are paid into the player’s account while bigger wins are claimed by the ticket owner and delivered securely by the courier service.

While other lottery couriers charge an upfront fee on customer deposits as their way of making revenue, TheLotter charges a commission on ticket purchases and waives deposit fees. It does not take a cut of any winnings.

The lottery courier market continues to grow in the U.S. Tickets purchased via a courier app account for less than 1% of total U.S. lottery sales but the apps are gaining prominence. DraftKings acquired Jackpocket for $750 million earlier this year and Jackpot.com has struck a prominent partnership with the Associated Press.