Citizens analysts see iLottery driving growth in US gaming
The gambling scene in the United States is changing subtly. iLottery and lottery courier services are steadily gaining popularity, while sports betting and online casinos continue to face governmental obstacles. With businesses such as Lotto.com becoming more prominent as part of this wider shift in the gaming industry, this slower growth represents a sector that is less visible but increasingly important.
Why iLottery is gaining attention
A lottery courier service allows people to purchase official state lottery tickets online, with the service buying and storing the physical ticket on their behalf for a small fee. Interest in iLottery is growing as lawmakers remain cautious about expanding sports betting and online casinos, since the lottery is already established in American culture and linked to public funding, particularly for education.
Citizens Bank spotlights
Citizens Bank recently featured Lotto.com, reflecting the growing interest in the online lottery sector, which is regarded as less contentious than other forms of online gambling. Analysts note that iLottery does not carry the same stigma as online casinos or sports betting because lottery profits are directed towards public projects. As a result, expanding lottery access is often seen as more acceptable, with many associating it with funding for schools, roads, and community initiatives.
Stalled progress of iGaming in US
Lottery revenue in the US is often seen as a way to support public programmes without raising taxes, making it politically easier to expand. By contrast, Maine is still waiting to open its market, while Rhode Island was the most recent state to introduce online casino gaming in 2024. Meanwhile, nearly 20 states now permit online lottery ticket sales, including Michigan, Pennsylvania, Virginia, Georgia, and North Carolina, with Kansas joining in early 2025, showing steady growth in this area.
After multiple delays, Massachusetts is scheduled to introduce iLottery in July 2026. The state’s citizens already spend among the highest amounts per person on lottery tickets nationwide. Interest in iLottery has grown partly because it is easier and cheaper to reach new customers compared to other forms of online gambling, with major jackpots drawing widespread attention. Lotto.com has expanded quickly, employing 200 people in New Jersey and serving about 4 million customers across 11 states, with its user base reflecting similar demographics to sports bettors.
Regulatory expansion as next frontier
Lottery sales in the states where Lotto.com operates amount to about $30 billion, compared with $120 billion across the wider U.S. market. This highlights room for growth, and the overlap between lottery and sports betting is becoming more noticeable as both sectors draw on similar customer bases.
Several states have explored regulating lottery couriers, but Texas took a different approach by banning them in 2025 after two disputed jackpot wins raised concerns about fairness. The controversy led to investigations and the eventual abolition of the Texas Lottery Commission later that year. Observers note that Texas’s stance reflects its long and complicated history with gambling, making it an exception rather than a signal of broader national policy.
As other forms of online gambling face tighter oversight, iLottery is attracting more attention. Demand from players continues to grow, regulations are more straightforward, and participation online is still very limited, leaving considerable room for expansion.
Stay ahead of iGaming’s biggest stories with SiGMA’s Top 10 News countdown. The world’s biggest iGaming community brings you weekly insights and subscriber-only offers. Join HERE today.
