New Mexico Attorney General Raúl Torrez’s new opinion on lottery couriers is not a positive one and has resulted in Jackpocket exiting the state.
The New Mexico Department of Justice submitted an opinion at the request of New Mexico’s federally recognized tribes. Jackpocket had a memorandum of understanding (MOU) with the New Mexico Lottery in place but the tribes wanted to understand if that MOU was in violation of the state’s compact with the tribe.
In the opinion, Torrez raised several issues regarding Jackpocket and its operations in New Mexico, including its impact on the state’s Indian gaming compact. The compact considers internet gaming illegal and requires good faith negotiations between the state and its tribes to determine whether to consider adjustments to the compact.
Accordingly, Jackpocket informed Dustin Gouker’s The Closing Line newsletter that the company will be exiting the state.
Torrez says lottery couriers are in violation of tribal compact
In addition to the active gaming compact in New Mexico, state gaming law also prohibits “any person from directly or indirectly, knowingly accept[ing] for a fee, property, salary or reward anything of value from another to be transmitted or delivered for gambling or parimutuel wagering on the results of a race, sporting event, contest or other game of skill or chance or any other unknown or contingent future event or occurrence.”
In response, Torrez determined that Jackpocket’s operations in New Mexico constitute internet gaming and “triggers the requirement that the state reopen good faith negotiations with the tribes to evaluate its impact.” Torrez and his office made the determination by breaking down the definition of “internet gaming” used by the Unlawful Internet Gambling Enforcement Act as the Indian Gaming Regulatory Act and New Mexico’s compact don’t provide definitions for “internet gaming.”
Torrez considers Jackpocket an internet gaming provider as it provides a game that is played for stakes while allowing individuals to play the game utilizing the internet.
“Moreover, the Memorandum of Understanding [between the New Mexico Lottery Authority and Jackpocket] appears to run afoul of New Mexico law,” said Torrez in the opinion. “Jackpocket’s continued operation in New Mexico is therefore subject to challenge.”
Jackpocket’s fees also came into question as Torrez and his office believe the courier’s fees may violate the Lottery Act due to the sale of tickets outside of their stated prices. Jackpocket is also being considered a lottery retailer requiring state licensing approval.
New Mexico neighbor discusses lottery couriers
New Mexico is addressing lottery couriers as a Texas regulator considers them unlawful.
Last month, the Texas Lottery Commission (TLC) declared lottery couriers illegal under state law marking a dramatic change in stance for the regulator.
The TLC changed its stance after the filing of a class action lawsuit and scrutiny from lawmakers, including Lt. Gov. Dan Patrick who has called for an investigation into the commission, couriers and retailers to ensure that “no one has an advantage” in the market.
In response to lottery courier concerns in Texas, Rep. John Bucy III has introduced a measure to establish the regulatory framework for lottery couriers in Texas.
The measure, House Bill 3201, requires couriers to accept services from patrons over 18 years of age with geolocation requirements to ensure sales are made within the state. HB 3201 also proposes responsible gaming with prominent displays of problem gambling assistance messaging required by courier websites and apps.
