NM state lottery’s new app exceeds legislative authority
The New Mexico Lottery quietly introduced a new lottery app in April 2022 called Jackpocket, usurping legislative authority. Jackpocket currently enables New Mexicans to play seven lottery games via their smartphones, laptops or home computers using the Jackpocket app. However, this game lacks statutory authority, allowing online gambling, a concept previously rejected by the Legislature.
No action has been taken by the Legislature to legalize Jackpocket.
This unauthorized move by the state lottery echoes a similar incident in 2016, dubbed “Play at the Pump,” where the lottery installed games at gas station pumps without legislative approval. Following public outcry, these games were shut down.
Jackpocket poses a much greater risk than Play at the Pump. While the latter allowed lottery play at a dozen or so service stations, Jackpocket extends the opportunity to play at least seven online lottery games on hundreds of thousands of smartphones and online-accessible devices statewide. Jackpocket would provide a massive expansion of a much more dangerous form of gambling in New Mexico.
DraftKings, a giant in the online gambling industry, recently announced plans to acquire Jackpocket for $750 million, intending to expand online sports betting and casino-style games in approximately 10 states, including New Mexico, through their app. That would enable an even more massive expansion of gambling in the state.
Another fact to take into consideration is that the state/tribal gaming compacts state that if the state allows online gambling this would automatically open state/ tribal compacts to negotiating, with the potential of altering the compacts and potentially reducing revenue sharing, expanding hours of operating, extending the life of the compacts and allowing the serving of alcohol on the casino floor. Losing revenue sharing would cost the state over $50 million per year.
At the very least the Legislature and the governor should have the attorney general force the state lottery to close the illegal Jackpocket app. An even better solution would be to shut down the New Mexico Lottery for usurping legislative authority and violating state law. Scholarship money could be easily made up with the revenue surpluses recently experienced by the state.
If a private company started offering illegal gambling to the public the attorney general would quickly close them down.
It’s time for the government to get out of the predatory gambling racket.