Online Lottery CEO: Couriers Are Innovation In Lottery Industry, Not Competition

The CEO of an up-and-coming games and technology provider in the online lottery industry doesn’t see why there’s such resistance to lottery couriers — and would welcome their presence in his state if he ran a lottery.

Brad Cummings, the founder and CEO of EQL Games based in Louisville, Kentucky, says that any type of innovation — including couriers — is a good thing for the industry.

“I don’t have any issue with couriers,” Cummings told Lottery Geeks. “In fact, if I was [running] a lottery, I certainly wouldn’t have an issue with it being in my state because it’s more advertising for my product. You’ve got oftentimes venture-backed companies that have a lot of resources that can help elevate the lottery product.”

Cummings is as involved with every facet of iLottery as any stakeholder. EQL Games aggregates games from other developers, creates its own games, works with licensing, and provides its backend technology. All four arms maintain relationships with online lotteries in Michigan, Virginia, and Washington, D.C.

To him, couriers don’t pose a threat to his company or to similar ones such as Scientific Games, IGT, and NeoPollard.

“We certainly don’t see it as direct competition,” Cummings said. “I’m certainly not one to say that we should get rid of X, Y, or Z.

“I’m supportive of any innovation that helps lotteries to deliver more money to good causes.”

Where lottery vs. couriers battle stands

Not everyone in the lottery industry shares Cummings’ beliefs.

Texas has dominated the discussion for months thanks to its hardline stance against couriers, such as Jackpocket and Jackpot.com.

In late April, the Texas Lottery Commission voted to ban all lottery courier services in the state. This came a couple months after it announced its intention to shut down couriers, prompted in large part by Kristen Moriarty winning an $83.5 million Texas Lotto jackpot from a ticket purchased via Jackpocket. The TLC has refused to pay the jackpot to the Texan, resulting in a legal battle that’s capturing the attention of the lottery industry.

Lotto.com, another lottery courier, has sued the TLC.

Elsewhere, Connecticut passed a bill this legislative session that bans lottery couriers and online sweepstakes casinos. Indiana passed a bill saying couriers aren’t allowed to operate, although a co-sponsor of the bill said this was more of a stopgap to shut down couriers until the legislature was able to again consider an iLottery bill.

One state wants to regulate couriers

More recently, New Jersey has made moves on the other side of the spectrum. Earlier this month, the New Jersey Lottery announced it had submitted a request to add amendments to the New Jersey Administrative Code regarding a regulation framework for lottery couriers.

The proposed amendments would “clarify and revise administrative and compliance requirements for Lottery couriers to align with current industry standards” and “affect licensing, insurance, financial reporting, and the purchase and delivery of lottery tickets by couriers,” according to an NJ Lottery press release.

“The proposal would allow courier services to operate more efficiently [and] reduce administrative burdens while better reflecting the current technological and economic landscape.”

Simultaneously, a bill moving through the New Jersey Legislature that would prevent the NJ Lottery from selling tickets over the internet explicitly exempts couriers from any such change in law.

“This bill does not affect the rights of registered courier services from selling lottery tickets via the internet,” the statement section of Assembly Bill 3759 reads, in part.

Thanks for hogging the spotlight

Couriers are just about the biggest fans of sweepstakes casinos. If the sweeps industry wasn’t under such prolonged, intense scrutiny this year, chances are more stakeholders and lawmakers would be turning their attention toward couriers.

For the time being, couriers have taken a distant backseat to sweeps casinos under the gambling industry’s collective microscope.

Although Texas is now off-limits for couriers, California, New York, and New Jersey remain fertile ground for them. Massachusetts is tops in the country for lottery spending per capita, and couriers such as Jackpocket, Jackpot.com, and Lotto.com are active there.

For Cummings, whose company expects to sign partnerships with four or five more state online lotteries over the next 12-18 months, meeting the needs of lottery platforms and, in turn, their players is what matters. Couriers have no impact on EQL Games’ ability to do that, he believes.

“The market’s going to evolve the way that it evolves,” Cummings said.