As the sweepstakes gaming market shrinks in the United States, one operator may be better positioned than most when it comes to long-term sustainability in the U.S.
Or, at least certainly in New York and New Jersey.
And this is a case of the rich getting richer, because that operator is VGW, the Australian behemoth behind Chumba Casino, LuckyLand Slots, and Global Poker.
VGW owns a 13.9% stake in the British lottery services company 99Dynamics.
And 99Dynamics owns Jackpot.com, one of the most-trafficked lottery courier apps in the U.S. Jackpot.com is currently legal and live in seven states: Arizona, Colorado, Massachusetts, Arkansas, Ohio (where a sweeps ban bill is currently active), and …
New Jersey and New York.
Of course, New Jersey and New York are two of the four states (alongside Montana and Connecticut) that have passed bills banning sweepstakes casinos so far in 2025 as lawmakers — and gambling industry stakeholders — push back against the dual-currency gaming model sweeps casinos use to allow players to redeem digital coins for cash prizes.
Enter, Jackpot.com
New Jersey and New York are regarded as top-five markets for the sweeps gaming industry. So bans there are significant blows for sweeps operators that have come to rely on revenue from those states.
For operators fully exiting, that revenue will vanish. Or, if they choose to continue offering social games, the revenue will diminish greatly.
That’s where Jackpot.com comes into play for VGW.
No, it won’t make up for the loss of sweepstakes casino revenue in New Jersey and New York. But it will help ease that blow. Even if just a bit.
According to an industry analysis from independent research firm Eilers & Krejcik Gaming, the U.S. lottery courier sector generated $905 million in sales in 2023 — which translated to about $120 million in revenue from things such as deposit fees and commission percentages.
The $905 million in sales marked only 0.8% of lottery revenue in 2023, but EKG expects that to grow to 2.6% by 2028. That would lead to a compound annual growth rate in courier revenue of 45% from 2023-28.
EKG also broke down the top five markets for lottery couriers in 2023:
- New York: $38 million (32% of the market)
- Texas: $29 million (24%)
- Ohio: $18 million (15%)
- New Jersey: $17 million (14%)
- Massachusetts: $8.8 million (7%)
(California would presumably be the top courier market, but that state has barred couriers from entering. California is also considering banning sweeps casinos, with Assembly Bill 831 slated for its third and final Senate committee hearing on Aug. 18.)
Not competing with Jackpocket, but revenue nonetheless
In terms of operators, nobody challenges Jackpocket. The industry leader now owned by DraftKings pulled in $76.8 million in 2023 revenue, good for 64% of the entire market, per EKG.
Lotto.com was second at 30% ($36 million) and other couriers, including Jackpot.com, split up the remaining 6%.
However, it’s worth noting that Jackpot.com is legal in all of the top-five courier markets, while Lotto.com, as well as the other couriers Jackpot.com shares the 6% market share with, do not. So for the sake of projection, let’s put Jackpot.com’s share at 4%.
And now, let’s do some math in New York and New Jersey, based on 2023 revenues:
- 4% of $38 million is … $1.52 million.
- 4% of $17 million is … $680,000.
That’s $2.2 million in estimated 2023 revenue for Jackpot.com in the two states.
Now, some more math. (Sorry, everyone.) If VGW has a 13.9% stake in Jackpot.com, that means the sweeps giant would have received a theoretical $305,800 from the courier app’s 2023 revenue in New York and New Jersey.
So, does it move the needle?
Not at all. For reference, VGW generated $6.1 billion in revenue in 2024. (So the theoretical $305,800 would be a meager 0.005%.)
But is that an extra little cherry-on-top of revenue that other sweeps operators won’t get from now on in New York and New Jersey?
You bet.
And those were 2023 revenues. Despite the modest current levels of regulatory scrutiny on couriers, it’s safe to project the numbers in 2025 and beyond will continue to grow — especially with the stagnation in online lottery legalizations around the country forcing players to turn to couriers as their only mobile option.
So … about that courier scrutiny
Some states are looking to restrict courier activity, similar to bans on sweeps casinos.
But that level of activity is minimal.
And, in fact, some states are regulating couriers instead. (Which is what sweeps advocacy groups like the Social Gaming Leadership Alliance and Social and Promotional Games Association are urging lawmakers to do with sweeps.)
So far in 2025:
- Texas has outlawed couriers.
- Indiana passed a bill banning couriers (with an understanding that lawmakers will revisit the topic when they have a chance to revisit legalizing a state-run online lottery).
- Connecticut passed a bill banning couriers and sweeps casinos.
- Arizona proposed a framework to follow in New York and New Jersey’s footsteps and regulate couriers.
The fervor behind courier opposition isn’t as passionate as that of sweeps opponents, so it feels like, for the most part, couriers are in a safe-ish place. (For now.) Plus, the future of couriers in New York and New Jersey seems stable, given both states have already created regulatory structures to form a safeguarded market that financially benefits the states.
Which is all good news for VGW’s 13.9% stake in Jackpot.com. (As insignificant as it may seem in their overall money pie.)
