DraftKings to Suffer Only Mildly in Texas over Jackpocket

According to a recent Eilers & Krejcik Gaming report, Texas could have represented $57 million or 25% of the total US lottery courier revenue in 2025, but this is no longer viable following a brief legislative flare-up in the Lone Star State, which saw the prohibition of such apps.

Jackpocket Quick to Celebrate Unsuspecting of What Comes Next

It all happened very quickly. Following the most recent win, which saw a Jackpocket-bought ticket grab the state’s $83.5 million Lotto Texas Jackpot, local lawmakers raised hackles over the legitimacy of such services altogether, calling into question consumer protections and the implications of the model to the economy at large.

Although Jackpocket celebrated the event as a clear sign that its service was working as intended, the company soon discovered that it was effectively on its way out following a rapid succession of events that adversely affected its business.

Following the big win, Lieutenant Governor Dan Patrick said that lottery couriers ought to be shuttered, and it was not the first time that he had suggested this. In 2023, a $95 million jackpot was won by a syndicate that bought a $25.8 million ticket, infuriating lawmakers and leading to a fresh bout of criticism.

What seemed a little hot-headed at first, and impulsive, though, has materialized to take hold on the state as Texas promptly prohibited lottery courier services last week, scoring a win for Patrick and other critics who have been long calling for this move.

How Would DraftKings’ Business Be Impacted

DraftKings, which owns Jackpocket after it forked out $750 million to buy the app in May 2024, will be impacted by the prohibition, of course, but only marginally, it seems. Jackpocket holds about 70% of the current market slice, with EKG’s report putting the revenue going to lottery courier services at $57 million, as already mentioned.

In other words, DraftKings may stand to lose up to $39 million of its revenue, which is still less than 1% of its projected net revenue for this calendar year. Regardless, Jackpocket and other courier services have responded to the ban, calling it unjust.

Lottery courier services are not really set in any legal framework. For the most part, they are not prohibited, but only New York and New Jersey have clear rules that make them completely legal.

In the meantime, the bulk of lottery revenue derived by courier services comes from mostly five markets in the United States – around 92% of the total. Whether other states will follow Texas’ example is not yet clear.