The Lotter Exits New Jersey Market
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The Lotter, a prominent digital lottery courier service, has announced its withdrawal from the New Jersey market, effective November 19, 2025. The decision comes as the company redirects resources toward expansion in other U.S. states amid intensifying competition and regulatory scrutiny in the online lottery sector. This exit leaves New Jersey players reliant on the state's official iLottery platform, potentially impacting third-party access to popular multi-state games like Powerball and Mega Millions.
The move underscores the challenges facing courier services in a fragmented U.S. lottery landscape, where state-specific regulations often favor direct operator channels. The Lotter, which facilitates ticket purchases on behalf of users from official retailers, cited a strategic pivot to prioritize high-growth areas. Existing orders, subscriptions, and multi-draw packages post-November 19 will be canceled with full refunds, and account withdrawals remain available until February 17, 2026.
- Market Consolidation Accelerates: With competitors like Jackpocket (now backed by DraftKings and operating in 16 states), Lotto.com (11 states), and Jackpot.com (seven states), TheLotter's departure signals a shakeout among couriers, potentially strengthening incumbents' positions.
- Regulatory Implications: New Jersey's Division of Consumer Affairs has monitored courier operations closely; this voluntary exit avoids potential enforcement actions but highlights the need for clearer federal guidelines on digital lottery intermediaries.
- Player Impact Minimal but Notable: While refunds ensure no financial loss, the shift may reduce convenience for users preferring app-based purchases, prompting a migration to state-sanctioned apps.
The Lotter's announcement arrives at a pivotal moment for the U.S. online lottery industry, which has seen sales surge 6% over the past five years despite fluctuations in draw-based games. In fiscal year 2024, U.S. lotteries generated $30 billion for public causes, with digital channels driving much of the growth. iLottery states reported $516 per capita in sales through Q3 2025, nearly double non-iLottery regions. However, courier models like The Lotter have faced hurdles, including legal challenges over whether they constitute unauthorized sales agents.
Founded in 2002 and entering the U.S. in 2015, The Lotter has built a global footprint, serving over 50 countries. Its U.S. operations expanded rapidly post-2019, capitalizing on states' legalization of online ticket sales. New Jersey, one of the earliest adopters in 2019, generated significant volume for the courier, but recent competitive pressures—exacerbated by DraftKings' $750 million acquisition of Jackpocket in 2024—have reshaped priorities.
Industry analysts view this as a pragmatic retreat rather than distress. "Courier services must adapt to state-by-state variances," noted a report from Eilers & Krejcik Gaming. The Lotter plans to bolster its presence in states like Michigan and Pennsylvania, where digital penetration exceeds 20%. For New Jersey's 9 million residents, the change reinforces the New Jersey Lottery's app as the primary digital gateway, which already handles over $500 million in annual online sales.
This development may spur discussions on harmonizing regulations across the Multi-State Lottery Association (MUSL), which oversees Powerball. As digital adoption climbs—projected to hit 60% of global lottery sales by 2030—operators and couriers alike must navigate evolving compliance landscapes to sustain growth.
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