New Rule Requires Gaming Commission Approval Of Jackpocket, Lotto.com Ads

On Monday, the New York State Gaming Commission made a decision to modify its Lottery Courier Service Advertising regulations, thereby impacting the marketing strategies of companies such as Jackpocket and Lotto.com within New York.

The NYSGC has unanimously passed a proposal to restrict the language used in the advertising of lottery couriers, specifically Jackpocket and Lotto.com.

The objective of the proposal is to prohibit the dissemination of false, deceptive, or misleading advertisements. For instance, it intends to restrict the promotion of the courier service as a platform for customers to “play” the lottery or buy lottery tickets directly from them. Instead, the courier service can advertise its genuine services, which include facilitating the purchase of lottery tickets from licensed agents and delivering them to customers.

One commissioner disagreed with the majority, suggesting unofficially that it would be better to have a higher authority review the state’s New York Lottery courier regulations or possibly prohibit those businesses from operating in the state entirely.

It is evident that the idea failed to garner support. Instead, the NYSGC has given approval to the regulatory proposal aimed at tightening restrictions on advertising.

How new rule affects NY Lottery couriers

According to the NYSGC, the new regulation outlined in the proposal integrates the principles of responsible lottery advertising practices as stated in the North American Association of State and Provincial Lottery Advertising Guidelines. Additionally, it mandates the inclusion of problem gambling assistance messaging, similar to the requirement for casinos.

Under the new rule, a lottery courier service must submit draft advertisements to the NYSGC at least 15 days before they plan to release them. The commission will then have 10 days to review the draft and ensure it meets state regulations.

Advertising must exclusively consist of accurate information and must not contain any false, deceptive, or misleading content. Additionally, advertisements should prominently display a message providing contact information for problem gambling assistance. Recipients should have the ability to easily opt out of receiving future advertisements, in addition to fulfilling other necessary criteria.

However, a point of contention arose regarding the term “play” in the initial suggested regulation.

A courier service is prohibited from promoting or advertising their platform as a means to “play” lottery games or directly purchase lottery tickets. However, they are allowed to market and advertise services related to procuring or delivering lottery tickets, using terms like ‘digital lottery courier.’ It is important for the courier service not to market their services as ‘digital lottery.’

How Jackpocket, Lotto.com responded to rule proposal

Jackpocket expressed its disagreement with the proposal. In a recent public comment period, the company highlighted that a lottery courier service already offers a unique approach to playing the lottery, addressing the NYSGC’s concern of players potentially misconstruing “playing” the lottery with purchasing tickets through couriers.

Jackpocket argued that when the NYSGC authorized lottery courier services, it was well aware that it was introducing a groundbreaking way to play the lottery. The company stated that the commission had deliberately regulated courier services with the intention of creating this new method of playing the lottery.

According to the NYSGC, the company cautioned that preventing a licensed lottery courier from promoting lottery participation is an excessive measure that will result in unintended negative outcomes and unfavorable economic conditions. Although the specific consequences were not elaborated upon, Jackpocket highlighted that the ultimate result would be reduced engagement in the lottery system.

On the other hand, Lotto.com highlighted that it might be unable to promote a Powerball or Mega Millions jackpot if the NYSGC were to implement these fresh regulations, which mandate a 15-day notice. Moreover, the organization highlighted that there is no such requirement for licensed retailers in the state, who are mostly unrestricted in their advertising practices.