Texas Lottery Couriers Push Back After Senate Advances Ban

• Texas Senate passes bill to ban lottery couriers after jackpot controversy
• Coalition of Texas Lottery Operators calls for regulation not prohibition

As the Texas Senate unanimously advanced a bill Thursday that would make lottery couriers illegal in the state, a trade organization representing the couriers called for regulation over prohibition.

The Coalition of Texas Lottery Operators (CTLO) believes a few bad actors have given the industry a bad name. It urged the state House to get behind HB 3201, a bill that would establish a regulatory framework for the state’s courier industry that would include the mass purchase of tickets.

CTLO says it has called for the regulation of the industry for 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 Texas Lottery Couriers Work?

Couriers allow players to choose their numbers and buy tickets via an app. The courier will fulfill the order by buying tickets through a licensed brick-and-mortar lottery vendor.

But they have become hugely controversial in Texas after several couriers helped a European syndicate to win a $95 million jackpot in April 2023.

The syndicate was able to buy up every possible combination of winning numbers – all 25.8 million of them – by coordinating with three lottery couriers that provided the means to process tickets on an industrial scale. Normally, the Texas Lottery sells 1 to 2 million tickets per week.

This greatly reduced the chances of ordinary Texans winning the big prize. At best, they would only be splitting it.

“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 coalition is composed of the three largest couriers operating in Texas, Jackpocket.com, Jackpot.com, and Lotto.com.

Texas Lottery Commissioner Resigns

Last Friday, Texas Lottery Commissioner Clark Smith resigned amid intense legislative scrutiny. On Monday, the commission said it would ban lottery courier services and revoke the license of any outlet that sold tickets to such businesses.

While Texas law prohibits the sale of lottery tickets by telephone and online gambling is illegal, lottery couriers claim they fall into a legal loophole because they merely provide a delivery service for lottery tickets.

Previously, the commission’s position was that lottery couriers were legal but that it did not have the power to regulate them because such a power would require a mandate from the legislature.