Posted on: July 10, 2024, 10:17h.
Last updated on: July 10, 2024, 10:17h.
Lotto.com, a leading online lottery courier service, tells Casino.org that it recently signed up its two millionth customer.
Lotto.com and its competitors, including Jackpocket.com and Jackpot.com, allow players in states where online lottery sales aren’t permitted to purchase gameplays via the internet. Customers buy a ticket for draw games and scratchers that prompts a physical lottery courier to visit a brick-and-mortar retailer to complete the purchase.
Lotto.com, the first such online lottery platform in the United States, says its customer base now exceeds two million accounts.
It’s an incredible milestone for us, reaching two million customers with our accessible and convenient way to order lottery tickets,” said Lotto.com CEO Thomas Metzger. “We are especially proud to expand our customer base knowing this increases the incremental funds that our platform brings to the good causes that state lotteries support.”
The Lotto.com release said it took the company two years to reach one million customers but less than a year to double its accounts to two million. Lotto.com is headquartered in Jersey City, New Jersey.
Industry Under Scope
Only nine states currently allow their lotteries to offer online game sales and instant scratch-offs. They are Georgia, Illinois, Kentucky, Michigan, New Hampshire, North Dakota, North Carolina, Pennsylvania, and Virginia. The lottery in Washington, D.C., also permits online sales.
For the 36 other states that have a state-run lottery, tickets must be purchased in person at an authorized retailer. Lotto.com and its competitors seek to provide people who might not be physically able to visit a retail lottery venue, or simply want the convenience of playing from home, with that option in certain states that allow courier services.
The rise in popularity of lottery courier services has prompted some lottery officials to review whether such third-party operations should be allowed. The California Lottery, the third-richest state lottery with 2024 sales north of $9.2 billion, last month announced that the use of a lottery courier violates the lottery’s terms and winning tickets purchased online would be voided.
California lottery officials said the lottery was designed to support not only public education but also help small businesses that sell tickets.
“App-based and online lottery ticket resellers are not permitted to operate in California. Sales of California Lottery tickets by mail, online, or via a mobile application are illegal. Anyone who buys their tickets through a digital reseller is ineligible to win,” the California Lottery website reads.
Lotto.com Operations
While California has taken a hard stance against lottery courier services, many other states allow — or at least don’t explicitly prohibit — their use. Lotto.com is available in Arizona, Arkansas, Colorado, Nebraska, Minnesota, New Jersey, New York, Ohio, Oregon, and Texas.
New York remained the richest lottery state last year, with 2023 sales totaling upwards of $10.5 billion. Florida was next at $9.8 billion.
Lotto.com charges varying service fees ranging from 15% to 25% of the ticket price. For instance, $10 worth of Powerball tickets becomes $11.50 to $12.25 depending on the state where the courier service is used.
Lotto.com does not take a cut of a winning ticket, nor charges fees on cash withdrawals, though third-party payment processing fees could apply. A convenience fee is also applied to account deposits in New York.
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