Texas Lottery Launches Probe into Vendors Linked to Couriers After Jackpot Gamed

Posted on: March 12, 2025, 04:20h. 

Last updated on: March 12, 2025, 04:20h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.
  • Texas Lottery cracks down on retailers working with courier services.
  • European syndicate wins jackpot by purchasing all combinations.
  • Lawmakers debate banning or regulating lottery courier services.

Just two weeks after the Texas Lottery Commission (TLC) announced it would ban lottery courier services in a dramatic policy U-turn, the agency said Tuesday it had opened multiple investigations into retailers associated with the controversial practice.

Texas Lottery, lottery couriers, TLC
The Texas Lottery Commission is under unprecedented pressure to act on lottery couriers after three such businesses enabled a European syndicate to buy up all 25.8 million combinations for a $95 million jackpot. (Image: CNN)

Lottery courier services allow users to select their numbers and purchase tickets through a mobile app. The courier then fulfills these orders by acquiring physical tickets from an authorized brick-and-mortar retailer. Once purchased, the tickets are scanned and sent to the customer for confirmation.

Due to the high volume of ticket requests, couriers partner with licensed retailers that have multiple lottery terminals to efficiently process bulk orders. In some cases, the couriers own and operate these retail locations themselves.

Pressure on TLC

Banning couriers represents a dramatic policy shift by the TLC, which previously accepted these business because they digitized lottery ticket purchases, increasing ticket sales, while staying nominally within legal boundaries.

The U-turn came amid intense legislative scrutiny of the commission, and a threat from Lt. Gov., Dan Patrick (R) that the lottery would be scrapped altogether unless couriers were banned.

It was thanks to the bulk-buying capabilities provided by couriers that a European syndicate was able to buy up 25.8 million tickets, enough to cover all possible winning combinations for the April 22, 2023 draw.

After 93 rollovers, the jackpot had climbed to $95 million, which meant it was mathematically exploitable to someone who happened to have $25.8 million lying around. The syndicate scooped the jackpot and millions in secondary prizes.

It wasn’t illegal, but neither was it fair to ordinary Texas lottery players, and many lay the blame on the TLC. No wonder the commission is trying to look busy.

Taking Action

On Tuesday, TLC executive director Ryan Mindell told the Texas House Committee on Licensing and Administrative Procedure that his agency had “taken action” against retailers associated with couriers because of existing rule violations.

Several had either voluntarily surrendered their lottery vendor licenses or severed their relationship with couriers, Mindell said. A TLC spokesperson later told the Nexstar Media Group that compliance investigations into seven couriers remain open.

The TLC announced March 4 that it would prohibit courier services and that any retailer working with such a service would have their ticket sales license revoked. However, that policy change must go through a 30-day public comment period before it can be actioned.

Meanwhile, a bill that would explicitly ban courier services in Texas law was unanimously advanced by the state Senate. A bill introduced in the House instead advocates regulating couriers and banning the bulk purchase of tickets.

The Texas Rangers are currently investigating two jackpots that were won using couriers, including the one from April 2023.