A recent legal opinion issued by the New Mexico Department of Justice regarding the Jackpocket app has once again highlighted the complex and often inconsistent regulatory landscape of online gambling in the US.

New Mexico Attorney General (AG) Raúl Torrez’s assessment of the app’s operation suggests that Jackpocket was selling lottery tickets for a profit, without explicit authorisation from the state’s lottery authority.

DraftKings-owned Jackpocket had been selling lottery tickets through an agreement with the New Mexico Lottery Authority, which effectively permitted a form of online gaming in the state.

According to AG Torrez’s opinion on the matter, this would necessitate a renegotiation process as stipulated in Section 17 of the Indian Gaming Compact between New Mexico and the tribal entities.

In response to the opinion, Jackpocket revealed that it will suspend operations in the state, at least temporarily.

“After receiving a copy of an opinion from New Mexico Attorney General Raúl Torrez, which was requested by tribes in New Mexico, Jackpocket has temporarily suspended lottery courier operations in the state,” said DraftKings SVP lottery, Peter Sullivan, in a statement to The Closing Line.

“We are exploring options and avenues to find a resolution to this matter,” he added.

More restrictions and bans likely

The decision forms part of a broader trend in which state governments are scrutinising mobile and online gambling platforms across several distinct verticals.

Jackpocket’s departure from New Mexico follows similar regulatory actions in other states, notably Texas, where the state lottery commission has proposed an outright ban on lottery courier services.

The Texas Lottery Commission’s decision effectively forced Jackpocket and similar companies out of the state, reinforcing a pattern of legal obstacles that such platforms are encountering.

The state’s historically conservative approach to gambling means that online betting remains largely inaccessible to Texas residents.

These restrictions indicate that despite the growing trend of legalised online gambling in some jurisdictions, others continue to resist its expansion.

Utah, for example, is one of the strictest anti-gambling states in the country. The state explicitly prohibits all forms of gambling, including online gambling and betting.

Similarly, Hawaii also maintains a complete ban on gambling, making it one of the only states where no form of legalised gambling, including state-run lotteries, exists.

Several states still unsure how to proceed

Meanwhile, other states have not enacted full-scale bans but continue to restrict online gambling in significant ways.

Idaho has not taken any legislative steps to legalise online casinos or sports betting, effectively preventing most forms of internet-based wagering from operating within its borders.

Georgia, despite recent discussions about expanding gambling options, has yet to establish a legal framework for online sports betting or casino gaming.

South Carolina has also opted to maintain a prohibition on online sports betting and has not approved any form of online casino gaming, further reinforcing the state’s traditionally restrictive stance on gambling.

Beyond these explicitly restrictive states, there are others where online gambling remains largely unregulated or falls into a legal grey area.

California, for instance, has debated various forms of online gambling legislation but has not successfully passed laws to fully legalise online casinos or sports betting.

Alabama, Alaska, Minnesota, and Oklahoma have also not legalised online gambling.

In those states with clear regulatory guidance for iGaming, online lottery couriers may face complete bans. In some other states, at least for now, they’ll be able to use the lack of definitive guidance to their advantage.