Texas Lottery Couriers Push Back After Senate Advances Ban
As the Texas Senate unanimously moved forward with a bill on Thursday that would render lottery couriers illegal in the state, a trade group representing the couriers urged for regulation rather than a ban.
The Coalition of Texas Lottery Operators (CTLO) thinks that some negative influences have tarnished the industry's reputation. It called on the state House to support HB 3201, a proposed legislation that would create a regulatory structure for the state's courier sector, which would feature the bulk purchase of tickets.
CTLO claims it has been advocating for industry regulation for many years.
"We are disappointed that a pro-business state like Texas would consider shutting down companies that have for years followed the guidance and instruction of the Texas Lottery and honored the trust of millions of Texas customers,” CTLO told Casino.org.
How do Couriers for the Texas Lottery Function?
Players can select their numbers and purchase tickets through an app with couriers. The courier will complete the order by purchasing tickets from a licensed physical lottery retailer.
However, they have sparked significant controversy in Texas after multiple couriers assisted a European syndicate in winning a $95 million jackpot in April 2023.
The syndicate managed to purchase every conceivable winning number combination – totaling 25.8 million – by collaborating with three lottery couriers that enabled ticket processing on a massive scale. Typically, the Texas Lottery sells between 1 and 2 million tickets each week.
This significantly lowered the likelihood of regular Texans securing the grand prize. At the very least, they would merely be dividing it.
The Texas Lottery Commission has been alleged to permit courier services without the clear consent of the legislature. Critics argue that the commission established conditions that ultimately enabled the syndicate to exploit the system by prioritizing ticket sales over the lottery's fairness and integrity.
“Our companies have never been involved in any efforts to guarantee a jackpot win, and coalition members did not issue the equipment needed for outside entities to pursue their bulk purchase scheme,” said the CTLO. “Our companies oppose such bulk purchasing efforts and support the courier regulatory framework advanced in HB 3201.”
The alliance consists of the three biggest couriers functioning in Texas, Jackpocket.com, Jackpot.com, and Lotto.com.
Texas Lottery Commissioner Steps Down
Last Friday, Texas Lottery Commissioner Clark Smith stepped down due to heightened legislative examination. On Monday, the commission announced it would prohibit lottery courier services and withdraw the license of any vendor that sold tickets to these companies.
Buying every potential combination of the Texas Lottery isn’t against the law, but the couriers facilitating this operate in a gray area.
Although Texas law bans the sale of lottery tickets via phone and online gambling is not permitted, lottery couriers assert they operate within a legal gray area since they simply offer a delivery service for lottery tickets.
In the past, the commission maintained that lottery couriers were lawful but claimed it lacked the authority to oversee them, as such authority would need a directive from the legislature.
