Lottery couriers have become a unique phenomenon in US lotteries, providing a convenient digital link between the consumer and the traditional retail domain of ticketing.
More and more state lotteries are moving towards digitalisation, however, including the launch of online sales. Although some legislators have not been entirely on board with this in states like Colorado.
This begs the question, will iLottery deliver a blow to the lottery couriers and the role they have secured in the US lottery ecosystem?
Tom Metzger, Chief Executive officer of Lotto.com, one of the largest couriers, is more than confident that the sector is big enough for both as he reflects on lottery couriers status in the US ahead of next month’s Canadian Gaming Summit.
Lottery Daily: What role have lottery couriers played in the evolution of digital lottery products in the US, in your view?
Tom Metzger: It is no secret to those in the industry that lottery players have been getting older. US lotteries that seek to acquire younger players can have a difficult time doing so, as they are underfunded from a marketing perspective.
The most important role couriers play is investing heavily in marketing to these coveted demographics, creating consistent lottery players and generating significant incremental returns to the good causes that lotteries support.
As a lottery courier, Lotto.com spends millions of dollars marketing official state lottery products (traditional draw and scratch games) in every state in which we operate.
Furthermore, we spend 95% of our marketing budget on very expensive digital channels. Our digital marketing reaches new customers who have historically either not played the lottery, or if they did very infrequently.
The proof is in the demographics of our players versus traditional retail players. Our players skew much wealthier and younger. These are the types of players that lotteries need for long term success.
From what you’ve seen, what have been the biggest technological advancements in the North American lottery space in recent years?
This may sound a bit trite, but the internet. It is hard to believe that it is 2026 and according to Eilers and Krejcik, only 12% of lottery sales in the US come from digital channels. This is way behind almost any comparable product.
Lottery couriers provide a frictionless way for states to increase their online presence and grow their sales with no additional costs. Further, couriers can deliver the same traditional products that customers expect, and courier sales maintain the same favorable margins lotteries receive from retail sales.
With respect to couriers, Lotto.com pioneered the digital delivery of scratch tickets in 2022, and they are now available in six states. In the US, scratch tickets account for over two thirds of the lottery market ($120bn in the US) and have accounted for most of the industry’s growth.
Our proprietary process, which has been certified by GLI, delivers the same exact paper based scratch tickets customers enjoy at retail. We also launched keno this month in Massachusetts with great results and expect to add several more states before the end of the year.
How are lottery couriers responding to the rise of iLottery in the US?
We strongly believe that iLottery and couriers can coexist. Couriers offer a more traditional lottery product, and they market to a different customer.
If you take a look at the jurisdictions that offer both iLottery and courier (New Hampshire, West Virginia and Washington D.C.), both offerings have seen consistent sales growth year after year.
This type of omnichannel approach allows the lottery to attract the broad customer base needed for future success.
Does the increasing number of state lotteries launching an online lottery offering pose any challenges to your business models?
As I mentioned earlier, the US lottery industry is woefully under-penetrated from a digital perspective. If you take a look across the pond to the UK, they launched their digital channel back in 2003.
They have experienced consistent growth since then and digital now accounts for about half of their total sales. Most importantly all this growth has been achieved with no cannibalisation of retail!
If you extrapolate this experience to the US, there is approximately another $80bn of digital growth ahead. There is plenty of opportunity for couriers and iLottery to coexist.
What role do you see lottery couriers playing in the omnichannel experience?
Our most important role as I mentioned earlier is reaching new customers where they are.
For us that primarily means their mobile device, which is why we do not market via traditional OOH channels.
Similar to UberEats and other services, lottery couriers charge a convenience fee. This is great news for lottery retailers, as we spend significant marketing dollars bringing new players to the lottery game, and the next time that player is in a convenience store they are much more likely to purchase tickets at retail and avoid our fees.
This creates a true omnichannel flow, and explains why retail sales in states with couriers have consistently outperformed those without couriers.
How do you see the relationship between lotteries and couriers evolving over the coming years?
For courier growth to continue in a responsible way, we have always been advocates for regulation. In 2025 alone, we saw six states implement new regulations around lottery couriers and we hope that trend continues.
I believe couriers will evolve from an extension of the retail channel to truly partnering with lotteries across multiple initiatives like marketing, compliance and responsible play.
Building on this, how do you expect the relationship between retailers and lotteries to evolve as digitalisation of the sector continues?
Retail sales are – and always will be – the lifeblood of any lottery. In order for the lottery as a category to continue to grow, a careful balance must be struck between growing digital channels and emphasizing an omnichannel approach that benefits retail.
There are also a myriad of ways lotteries can cross market between digital and retail via couponing, promotions, etc., so that both channels can continue to thrive.
What key lessons about the North American lottery ecosystem do you think Canada Gaming Summit attendees will take away from the event?
For lotteries to maintain their relevance and growth, especially in the face of competition from sports betting and online casinos, they need to responsibly expand the channels in which their lottery product is made available.
Lotteries also need to take advantage of the marketing spend that companies like couriers can contribute in their jurisdiction.
The best possible state-run lottery website can always benefit from adding other channels. Nike is perhaps the best example. Nike.com is a wonderful and effective website, but it’s not the only place to buy Nike shoes.
Nike recognises the value of placing its product in retail stores, and allowing Nike product sales on other digital platforms like Amazon and Walmart.
Tom Metzger will be speaking at SBC Summit Canada 2026 on May 21 on a panel titled “Omnichannel Opportunities: Land-Based and Lottery Domination on the Horizon?“.
To catch this panel, along with the full conference program and everything else that SBC Summit Canada has to offer, secure your ticket here. Affiliates and operators qualify for complimentary passes.