New Mexico Lotteries

In 1994, New Mexico voters approved the formation of a lottery in a public referendum. The legislature then passed Senate Bill 853, the New Mexico Lottery Act, which was signed by Gov. Gary Johnson on 5 April and went into effect on 1 July 1995. On 27 April 1996, New Mexico launched the Lottery with instant tickets. Initially, 60% of net proceeds from the Lottery went to the Public School Capital Outlay Fund and 40% went to the Lottery Tuition Fund. In 2001, this distribution was changed by the legislature so that all Lottery profits were directed to Lottery Tuition Fund for Legislative Lottery Scholarships.

Retailers receive a commission of 6% on their gross ticket sales and a 1% cashing commission on winning tickets sold. Retailers may earn a bonus of between $1,000 and $50,000 if they sell the winning ticket for RoadRunner, Hot Lotto, Mega Millions or Powerball top prizes. By law, the Lottery is required to return at least 50% of proceeds to players in the form of prizes. Winning tickets may be claimed for up to 90 days from the drawing date or the end date of a Scratcher game. After this time, they are considered unclaimed and are paid into the Lottery Prize Fund. These unclaimed prizes are used for instant and drawing game prizes and for second-chance drawings.

In 2005, New Mexico began a collaborative program between the often-separated lottery and casino gaming markets, introducing the first state Lottery scratch-off ticket that is sold and redeemable at a casino – the Santa Ana Star Casino.

In July 2018, the New Mexico Lottery Authority announced it was looking into the possibility of "offering a game tied to the outcomes of sporting events." Authority Chief David Barden said a contract attorney for the agency was examining what the authority can or cannot do legally when it comes to sports-related betting.

In 2019, legislation was introduced to prevent the New Mexico Lottery from launching a sports wagering game.

In 2022, the Jackpocket lottery app officially launched in New Mexico. Through the Jackpocket app customers can buy New Mexico Lottery tickets online provided they are within state lines.

In 2022, the Jackpocket lottery app officially launched in New Mexico. Through the Jackpocket app customers can buy New Mexico Lottery tickets online provided they are within state lines.
In late February 2025, several New Mexico tribes and pueblos — citing concerns about competitive harm to their exclusive compact rights - formally requested that Attorney General Raúl Torrez opine on whether Jackpocket's lottery courier operations were lawful. On March 4, 2025, the AG issued an opinion concluding on all four questions that Jackpocket's app constituted "internet gaming," triggering the state's obligation to renegotiate the tribal gaming compact in good faith; that the app violated state law prohibiting third-party fee-based transmission of gambling proceeds; that Jackpocket was effectively selling lottery tickets above their stated price without CEO authorization; and that Jackpocket required a certificate of authority from the New Mexico Lottery Authority that it did not possess. Jackpocket suspended all New Mexico operations on March 6, 2025. The exit was particularly significant given that DraftKings had acquired Jackpocket in 2023 and the platform had been operating under an MOU with the New Mexico Lottery Authority since 2022.