Lotto.com enters lucrative Massachusetts lottery market

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Digital lottery courier Lotto.com has launched in Massachusetts, which it notes is the best-performing lottery per capita in the country.

New Jersey-headquartered Lotto.com is now live in 11 U.S. states, where it digitally delivers lottery draw games and scratch tickets to players as a third party. It had most recently entered Arizona as state number 10 in June.

“We are thrilled to launch in Massachusetts, the best-performing lottery per capita in the country,” said Thomas Metzger, CEO of Lotto.com Inc. “We also look forward to bringing incremental funding to the communities across the Commonwealth that the Lottery supports.”

The courier will provide Massachusetts’ first-ever digital scratch ticket offering. In June of last year, Lotto.com introduced Digital Scratch tickets, which are currently available in seven of the courier’s 11 states, masking it the first courier to deliver scratch tickets digitally to a U.S. market.

Customers in Massachusetts can order official state lottery tickets on Lotto.com for popular lottery games including Powerball and Mega Millions, as well as the Digital Scratch tickets that allow users to play official state lottery scratch tickets on their computer or preferred mobile device.

Massachusetts had the the fifth-most lucrative lottery market in 2023 with sales of more than $6.1 billion. Lotto.com said that, prior to its launch in Massachusetts, it has a customer base of over 2.2 million users.

Lottery courier market continues to expand

Lotto.com entering Massachusetts is the latest step in what has been a big year for digital couriers, which allow customers to buy tickets via their app and automatically credit most winning tickets to a player’s online account, taking a commission fee on deposits and/or ticket purchases.

In Massachusetts, Lotto.com joins its two main competitors in the digital lottery courier space, Jackpocket and Jackpot.com, and it now has the advantage of being able to offer scratch tickets that its rivals cannot. In some other markets, that trio are joined by TheLotter, which has more than doubled its reach in the U.S. market this year.

A raft of headline deals in 2024 have indicated just how much the digital lottery courier market is booming right now.

The most high-profile came in May when DraftKings completed its $750 million acquisition of Jackpocket and stated that the major operator believes the purchase will allow the company to tap into the U.S. lottery vertical, bolster its customer acquisition capabilities and cross-sell its products.

The following month, Jackpot.com made a splash of its own when it was signed up by the Associated Press (AP) as its official lottery courier and provider of nationwide lottery results across all AP customer websites.

As of July 15 of this year, Google now accepts and runs ads for lottery couriers in at least 33 states plus D.C.

Massachusetts to launch state online lottery late next year

Massachusetts will soon have a state-run mobile lottery option for Bay Staters.

Gov. Maura Healey signed into law in July a provision to allow online lottery sales and einstant games starting next year. The Massachusetts State Lottery Commission will now conduct a process to find an operator for the online system. Massachusetts Lottery Executive Director Mark Bracken said he anticipates launching the online platform in “approximately 16 months”, equating to late 2025.

The legalization was the result of a years-long drive to expand into an online market. The calls had grown louder in the two years since the state legalized online sports betting in 2022.

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