Texas Lottery Shuts Down Courier Services with New Ban

A Big Shift in Policy

Texas Lottery Commission (TLC) voted unanimously to ban lottery courier services, halting online ticket sales through apps and websites.

“Lottery couriers legally operated for years with the cooperation and assistance of the TLC,” said the Coalition of Texas Lottery Couriers, arguing the ban eliminates jobs and revenue due to political pressure.

The decision reverses the TLC’s prior claim that it lacked authority to regulate couriers.

Couriers like Jackpocket and Lotto.com, operating since 2019, allowed Texans to buy tickets remotely by purchasing them at licensed retailers, often owned by the couriers.

The ban, effective immediately, lets the TLC revoke licenses of retailers working with couriers.

Fraud and Oversight Concerns

The ban stems from fears of illegal sales to minors, bulk purchasing, and money laundering, per dallasnews.com. A 2023 incident, where a foreign group bought 99% of Lotto Texas combinations to win a $95 million jackpot, sparked a class-action lawsuit alleging TLC complicity.

“That was filed before we knew how bad it really was,” said Sen. Bob Hall, author of Senate Bill 28, adding, “Since then, the couriers are just symptomatic of what the problem is.”

Lt. Gov. Dan Patrick and Gov. Greg Abbott pushed for Texas Rangers probes into the TLC’s courier ties. Attorney General Ken Paxton’s office also investigates.

The TLC’s shift followed pressure from Patrick, who called prior agency statements “garbage”.

The Coalition of Texas Lottery Couriers, representing Jackpocket and Lotto.com, claimed couriers operated legally with TLC support. Lotto.com filed a lawsuit to block the ban, arguing it’s unenforceable.

Couriers sold $226 million in tickets by 2024, outpacing traditional retailers.

Sen. Bob Hall’s Senate Bill 28, passed unanimously in February, criminalizes online ticket sales, though it awaits House action. A competing House bill proposes regulating couriers.