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The future of U.S. lotto courier services: expert insights from theLotter CEO Yael Hertz

theLotter is a leading online platform for lottery gameplay, and it might be coming to your state.

The theLotter logo on a white background.
Halley Bondy

High-quality online lottery play from theLotter.com may be coming to your state.

In the United States, courier lotto services are a fledgling market. The services - which allow players to buy tickets online via official, vetted state lottery retailers - are quietly growing amid a tangle of state regulations.

The biggest contender to hit the courier market is theLotter, an established lotto company formed in 2002 and headquartered in Malta. theLotter’s easy-to-use app is inching through the U.S. with digital offerings now available in Texas, Minnesota, Oregon, and fresh launches in New York and New Jersey.

The movement toward online play is imminent. Users want the convenience of purchasing tickets on their devices without having to go to a store. However, theLotter CEO Yael Hertz told Lottery USA in an interview that the company isn’t interested in cutting corners in the name of quick expansion. Hertz maintained that the future of theLotter is all about quality over quantity.

“The biggest challenge is to hold our horses at the end of the day,” said Hertz. “It's really easy to say, ‘I want to be there and there, and my competitors are there, so let's do what they're doing’…It’s highly important to do this correctly, step by step, and to maintain a very healthy risk appetite as a company. We need to make sure that everything is double-checked, triple, four-times checked with the regulators in the states, and that we are upholding our obligations to our clients.”

Yael Hertz

Florida, Arizona, and Ohio are in the works for theLotter’s platform. More states will be added to the roster by the end of the year, according to Hertz.

Hertz joined the company in 2022 as an external adviser and was made CEO last year. She’s a lawyer specializing in compliance, underwriting, and mergers and acquisitions, with an extensive background in online payments.

“We’re a monetary tool, a marketing tool, and a financial tool. There is a reason why they brought a lawyer to be the CEO. Sometimes, they regret it, but we abide by the rules. For that reason, there is no reason not to embrace us,” said Hertz.

An evolving industry

The lottery courier service industry isn’t only spreading, according to Hertz, it’s evolving technologically. Digital players are going mobile, for example, using tablets and phones more than their desktops.

“It's our obligation to evolve with this, and it’s what you will see within the next three, four years - that the industry will not just become bigger and more stable, but much more enjoyable,” said Hertz. “You won’t just see app colors changing, but the entire offering will change.”

theLotter also keeps pace with new individual state features and promotions. In each participating state, every draw, game, and promotion will be available on theLotter.

“For example, when we launched in New Jersey and New York, we analyzed all of their promotions, and we wanted to make sure that we can technologically support all of them, because not all couriers can,” she said. “And this way the end user can enjoy the same offering and same promotions they can get in the store.”

How it works

In participating states in the U.S., theLotter users can play local state lotteries online as well as Powerball and Mega Millions. Once on theLotter site, users simply register with personal details, select numbers, purchase a lottery ticket, and pay a service fee. The company will notify players if they win - no need to keep track of a physical ticket, according to Hertz.

Choosing Numbers with theLotter

“It's very straightforward. It's very, very easy,” said Hertz. “We pride ourselves on the fact that we ask only the necessary questions or details when it comes to the regulatory requirements…We want to maintain enthusiasm and enjoyment, because at the end of the day, customers are coming to our platform to enjoy themselves.”

For small wins, theLotter will credit the amount to player accounts, and players can opt to withdraw that amount, or to reuse funds for further purchases. After bigger wins, an employee at theLotter will assist users through the process, whether they want to withdraw or mete out winnings.

Hertz said:

We will be there A to Z from the purchasing until you have the money. We will make sure that the wins are actually claimed by you.

Notably, theLotter’s customer support team features actual human beings.
“Our customer support is by far superior to our competitors’,” said Hertz. “The fact that we don’t use bots, the fact that at any time of the day or night, you can contact us, you will have a real person, real agent, answering your concerns or questions, I think that puts us in a different position than a new courier service.”

theLotter’s popular subscription feature allows users to play the same numbers automatically every draw, and the seventh lottery ticket is free. Players can deactivate or change their subscription numbers anytime.

They can also join a syndicate - which is a group of players that pool their money together in order to increase their odds of winning - or bundle multiple lottery lines for cost-effectiveness.

Top-notch security

Because lottery courier services involve online financial transactions and remote lottery agents, players should remain keenly aware of site security.

theLotter features thorough measures from purchase to win. For starters, the company only works with highly checked lottery agents on the ground.

“We have a truly spotless reputation and ensure trust with our customers. All tickets are covered by strict security policies. There is a full audit process of the retailers that we work with, we make sure the lottery is notified. Everything is in a closed circle of information,” said Hertz.

All physical tickets are scanned and applied to the player’s individual account. The tickets are kept in a large safe for at least a few months after purchase, and players can access them during this time if they wish.

“We put the client's best interest in mind at all times. That goes for internet security, cyber security data, and physical security of the tickets,” she said.

theLotter prides itself on protecting customer data privacy and does not resell private information. The company works diligently with every state and its regulators to ensure all security measures and laws are met.

“We are really scrutinizing and analyzing each and every state along with the requirements of local lotteries to make sure that we can provide the best service, and that it is tweaked to the needs of the specific population of the state,” said Hertz.

Playing a critical role in state economies

Between Jackpot.com, DraftKings-owned Jackpocket and Lotto.com, theLotter is not without competition. But perhaps the most trusted, vetted contender is the state-run technology iLottery, which is currently available in Michigan, Illinois, Georgia, New Hampshire, Pennsylvania, Kentucky, Connecticut, Washington, D.C., New York, North Carolina, North Dakota, and Virginia. Rhode Island offers limited games. These states essentially offer virtual lottery tickets.

Hertz isn’t deterred by the growth of iLottery, however, and posited that theLotter’s courier feature has more to offer individual states.

"There is a question as to whether or not there is room for courier services. I do believe that we serve a purpose, and that there is room for everyone," said Hertz. "We keep the retailer in the loop. We provide the online service, but the retailer still gets his commission and still gets his income. This way, we really do distribute and participate actively in the economy. We are an enabler and marketer of the lottery industry, which provides so much revenue to states."

Encouraging responsible play

With gambling addiction affecting 2.5 million people, according to the National Council on Problem Gambling, courier services are joining the conversation to curb addictive gameplay.

theLotter is offering unique safeguards toward responsible gaming in all participating states.

A player who feels at-risk can set limits for themselves on theLotter site, for example, which will limit their ability to purchase tickets beyond a certain amount. The site also features educational videos and materials, and pop-ups that appear when a player has been on the site for a long time. It monitors players engaging in risky behavior, such as extensive play between two and four in the morning.

“We evaluate a risk-based approach when it comes to the customers,” said Hertz. “We are by no means a tool for problematic or addictive behavior. We make sure that it's a safe environment for the client.”

If you or someone you know has a gambling addiction, the National Council on Problem Gambling can be reached at 1-800-GAMBLER.

Takeaways

As theLotter expands into new states, players will benefit from its secure, easy-to-use, human-assisted functionality, and the app will update along with all local games and promotions. By providing a reputable service and ensuring responsible play, theLotter remains a top competitor in the online lotto space.

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