A person purchases a lottery ticket in New Jersey. | AP Photo New Jersey approves app to order lottery tickets via smartphone

State regulators have approved the launch of New Jersey’s first online lottery sales system, clearing the way for a third-party app that allow users to buy tickets, create pools and even collect winnings without ever touching a physical ticket.

Jackpocket, which launches Thursday, is the first company registered by the New Jersey Lottery under a 2016 law allowing “courier” services to buy and deliver lottery tickets on behalf of gamblers. New Jersey is the first state to formally approve of such courier services.


“We made it the most convenient, safe and fun way to play the official state lottery games,” Jackpocket founder and CEO Peter Sullivan said in an interview. “It’s kind of like Postmates.”

Gamblers, who must be in the state of New Jersey and at least 18 years old, can use the app to play games that include Mega Millions, Powerball, Cash4Life and Pick-6.

Jackpocket will purchase the ticket through its preferred retailer — the company declined to say with which retailer it is working — then scan the ticket so the user can see it. Users can create pools with friends, family or co-workers and also set the app to purchase a ticket for every jackpot.

“If they win, they’re automatically notified,” Sullivan said. “Winnings under $600 are automatically put in their account.”

For winnings of between $600 and $5,000, the company will mail the ticket to the customer, who can then claim their winnings through the lottery’s normal process. For prizes of more than $5,000, customers must pick up the ticket in person at one of the company’s service centers, provide an ID and sign a release form. They will then be given the ticket which can be redeemed through the normal process.

The app also includes features to help those grappling with gambling addiction, including daily deposit and spend limits, a self-exclusion feature and in-app access to responsible gaming resources.

The New Jersey Lottery brought in $3.35 billion in revenue in the 2018 fiscal year, setting a record after facing some trouble in recent years. It paid out $1.99 billion in prizes and $169 million in fees and incentives to a private management company.

All of the profits are dedicated to the state pension fund, which now owns the lottery as an asset and counts the revenue as a portion of the state’s annual contribution to the retirement system. The transfer helped reduce the unfunded liability of the pension system, theatrically shortening the time it will take for the funds to reach full funding.

It’s unclear if Jackpocket or other similar services, if approved by the state, could expand the number of lottery players or the amount of money that is bet on the system. The hope is more people will play the big jackpot games, like Mega Millions and Powerball.

New Jersey has moved quickly in recent years to expand both its gambling options and access to ways to bets.

The state launched online casinos games — including slot machines and table games — in November 2013. Revenue from online gaming, which former Gov. Chris Christie initially thought would reach $1.2 billion in its first year, got off to a slow start but had risen to nearly $300 million in 2018.

Last year, after winning a landmark U.S. Supreme Court case, the state legalized sports betting at the Atlantic City casinos and horse racetracks, and has allowed several companies to launch online betting apps. The new market has produced a surge in new revenue and has turned New Jersey into the biggest threat to Nevada’s previous monopoly on the sports books business.

Jackpocket claims its app “broadens access to the lottery and increases participation, helping to drive state lottery revenue and attract new consumers who otherwise would not be active lottery players.”

The company already operates its app in Minnesota, Texas, Colorado and New Hampshire, where it was not required to be approved by the government. It will also launch soon in Washington, D.C. So far, Jackpocket says, 66 percent of users are under the age of 45 — a young average age for a group of gamblers and a promising sign for its success.

A spokesperson for the New Jersey Lottery, which opened the application process for lottery courier registration in Aug. 2018, declined to say if any other vendors have applied to offer a similar service. For the time being, though, it will be “the first and only New Jersey registered courier service.”

“Obviously this is a huge opportunity, and we’re just focused on being the first and the best,” Sullivan said.