Attorney General Raúl Torrez’s legal assessment led to the closure of Jackpocket, DraftKings’ online lottery courier, in New Mexico. The ruling, which was made only a few weeks after the business left Texas, emphasizes the continuous regulatory obstacles that online gaming and lottery services in the US must overcome.
The Attorney General believed that Jackpocket’s business strategy in New Mexico was illegal under state law. Despite not having the New Mexico Lottery Authority’s express consent, the website makes money by selling lottery tickets. The AG contends that Jackpocket’s business structure needs to be renegotiated in accordance with Section 17 of the Indian Gaming Compact, which regulates gaming agreements between the state and Native American tribes, even if the company operated under a deal with the Lottery Authority.
Jackpocket Pauses Services While Seeking a Resolution
In response, Jackpocket announced a temporary suspension of its operations in New Mexico while exploring possible solutions. Peter Sullivan, DraftKings’ Senior Vice President of Lottery, acknowledged the legal concerns and signaled the company’s willingness to cooperate with regulators.
This latest development adds to the growing scrutiny surrounding online lottery couriers and digital gambling services. State regulators across the country are paying closer attention to how internet-based gaming platforms operate within their jurisdictions. Jackpocket’s withdrawal from New Mexico underscores the complex and evolving landscape of online lottery and sports betting regulations.
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