Analysts See iLottery as an Emerging Powerhouse in US Gaming
Summary
Analysts increasingly view iLottery — the digital sale of official state lottery tickets via courier apps and platforms — as a major growth opportunity for the US gaming market. Citizens Bank analyst Jordan Bender highlights Lotto.com as an example while arguing the vertical benefits from consumer familiarity, political acceptability and large untapped digital potential. Online ticket sales currently account for less than 1% of lottery purchases despite the US lottery market generating roughly $120 billion annually, signalling significant room for digital expansion.
The sector enjoys advantages over sports betting and iGaming: lower acquisition costs, loyal player bases, and free publicity generated by big jackpots. Major gaming operators have taken notice — DraftKings’ acquisition of Jackpocket is cited as a strategic move to capture cross-selling opportunities between lottery and sports-betting customers. Regulation remains a variable (Texas recently disrupted courier sales), but overall the category has remained relatively under the regulatory radar compared with newer betting products.
Key Points
- iLottery is gaining analyst support as a high-potential digital vertical within US gaming.
- Online ticket sales remain under 1% of total lottery purchases despite a c.$120bn annual market — a clear digital growth gap.
- Lotto.com operates in 11 states and focuses on draw games while expanding into scratch tickets in some jurisdictions.
- Lottery couriers act as intermediaries, offering lower customer acquisition costs and benefiting from loyal player behaviour and jackpot-driven publicity.
- Gaming operators (e.g. DraftKings via Jackpocket) see cross-selling value between lottery and sports-betting users, improving customer lifetime value.
- Regulation is the main outstanding risk: isolated crackdowns (like Texas) create short-term disruption, but broader adoption could accelerate as states look for revenue sources.
Context and Relevance
This story matters to operators, investors and regulators. For operators and platform providers, iLottery represents an entrée to mass-market digital customers with relatively low onboarding costs and strong marketing tailwinds from large jackpots. For investors, the current penetration gap implies a sizeable addressable market if states and couriers scale digital channels. For regulators and policymakers, the sector is a revenue opportunity but also a policy decision point on courier models and consumer protections.
Why should I read this?
Quick version: iLottery looks like one of those quietly huge opportunities — familiar product, cheap to serve digitally and still barely online. If you work in gaming, payments or investment, this piece saves you time by flagging where the next big digital growth might come from — and where the regulatory potholes could appear.
Author style
Punchy: This is not just another niche story — analysts see structural upside that could reshape customer acquisition and cross‑sell economics across digital gaming. If you want to understand where incumbents and challengers will place their bets in 2026, it’s worth digging into the detail.