Missouri Lottery’s $50M Sales Drop Sparks Online Ticket Sales Push

A Controversial Budget Move

Missouri’s state budget, finalized in May 2025, included a sneaky provision to shake up lottery ticket sales. Tucked into the $49.5 billion plan by the Senate Appropriations Committee, a 125-word clause greenlights a three-year pilot program for online lottery ticket purchases through courier services like Jackpocket or Lotto.com.

These firms would buy tickets for customers via licensed brick-and-mortar retailers, charging 15% to 25% surcharges, far above the 5% commission retailers earn.

The rule sidesteps lottery laws banning price changes for tickets. “It doesn’t say that our Missouri lottery has to utilize this,” said Senator Lincoln Hough, Committee Chairman. “It just kind of opens it up for them to use it if they wanted to.”

Opposition and Lobbying Frenzy

The proposal comes as Missouri Lottery reels from a $50 million sales drop last fiscal year, with education fund transfers down 15%. The lottery fuels 4% of state education funding, making its struggles a big deal.

Couriers could boost sales by tapping digital buyers, but the plan’s sparked a firestorm. In Texas, similar services faced a ban after a London trader gamed a $92 million jackpot by buying every number combination, raising fraud fears.

Missouri’s lottery stayed mum, with a spokeswoman declining comment. Hough, unaware of Texas’s issues when adding the provision, noted the lottery director seemed indifferent. “My guess is it probably comes out,” he said, hinting at its shaky future.

The courier model’s drawn fierce pushback. Casino and video lottery groups, usually at odds, teamed up to fight it, worried about market disruption.

Retailers, earning just 5% on sales and 2% on payouts up to $600, fear losing foot traffic. Meanwhile, courier firms hired top Jefferson City lobbyists to defend their case.

The provision’s budget-route entry, bypassing public debate, irked critics like Senator Joe Nicola, who called the process “bogus” and “deal making.”

Hough defended it, claiming transparency through public hearings. With a May 8, 2025, 6:00 PM CT deadline for budget talks, the conference committee’s juggling this among 169 earmarks.