Lottery Couriers May Shut Down in Texas

Some Texans may soon need to change the way they purchase lottery tickets.

A bill to ban couriers, which act as third-party vendors by taking orders on the customers’ behalf, received unanimous approval by the state Senate last week.

This comes after calls by Texas Gov. Greg Abbott to investigate last month’s $83.5 million lottery jackpot, the fifth-largest in state history. It had been growing since June.

“This jackpot win led to investigations by the agency amid continued focus by the public and our stakeholders,” Ryan Mindell, executive director of the Texas Lottery Commission, said in a statement. “Now, after information from those investigations and a review of its authority, the agency is taking direct action to stop courier activity from occurring in Texas.”

Courier services now operate in 19 states and are typically accessible online or via an app. Their usage, while convenient, has ignited concerns about irregular activities involving the lottery.

“Unregulated courier operations provide opportunities for other illegal and fraudulent activities to flourish, including money laundering, the sales of fictitious tickets, and false representations of a courier’s association with the TLC,” Mindell said. “If couriers are allowed to continue to operate, these critical safeguards will continue to be circumvented and the public will be harmed.”

State Sen. Bob Hall, the bill’s author, criticized the Lottery Commission having a hand in the controversial jackpot. The Republican legislator’s scathing rebuke of the Lottery Commission included accusations of enabling a “private-public partnership led by the state agency to engage in a criminal conspiracy to defraud Texans.”

A commission meeting is scheduled for Tuesday to discuss the Texas Lottery’s new proposed rules.

Jackpocket, a subsidiary of DraftKings Sportsbook and one of the largest courier services in the U.S., facilitated the sale of the $83.5 million prize at an Austin retail store. The company said it is planning to suspend operations in Texas as it continues to draw criticism from state legislators who are also due to look at legislation to legalize sports betting in the state later this year.

Pete Sullivan, senior vice president of Lottery at DraftKings, said Jackpocket has made over $550 million in sales in Texas since it began operating in 2019. It limits each customer to $600 in daily purchases.

“Despite our proven track record of compliance and commitment to responsible gaming, the Texas Lottery Commission has issued a new policy prohibiting our services, effective immediately,” Sullivan said in a statement. “As a result, we are suspending lottery courier operations in Texas.”

As more calls to investigate the Lottery Commission pour in, the bill now heads to the House.