Texas Lottery Votes to Ban Courier Industry Amid Political Firestorm

• TLC unanimously votes to ban lottery couriers
• Vote authorizes agency to revoke licenses of retailers that work with couriers
• Agency under pressure after syndicate gamed system for $96M jackpot

The embattled Texas Lottery Commission (TLC) has officially banned lottery couriers, the third-party businesses that allow users to buy lottery tickets via apps.

On Tuesday, the TLC voted unanimously to end the industry in Texas, as the agency has threatened to do since February when it declared courier operations to be illegal. Previously, the commission argued it did not have the authority to regulate couriers and therefore lacked the power to ban them. Critics say the agency actively encouraged the courier industry because it increased ticket sales.

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

Pressure On

The TLC has faced unprecedented pressure from the legislature to act against couriers after a European gambling syndicate won a controversial $95 million jackpot in April 2023.

Three courier companies processed 25.8 million tickets for the group, allowing it to buy up every possible combination of numbers. That meant it was guaranteed to share the jackpot, at a minimum, while scooping millions in secondary prizes.

Tuesday’s vote authorizes the TLC to revoke the licenses of retailers that knowingly assist or work with couriers. Several bills wending their way through the legislature proposed similar restrictions.

Immediate Enforcement

Sergio Rey, now the commission’s acting deputy executive director following the resignation last week of his predecessor Ryan Mindell, said the agency would immediately begin enforcing the new rules.

Industry advocacy group the Coalition of Texas Lottery Operators (CTLO) believes a few bad actors have given the industry a bad name and criticized .

“The TLC’s decision to approve a ban on lottery couriers is the most recent in a series of actions that have undermined the accountability and credibility of an agency whose operations are under investigation,” it said in a statement to Casino.org.

Lottery couriers legally operated for years with the cooperation and assistance of the TLC. Although the agency repeatedly testified that it had no regulatory authority over couriers, in response to political pressure, the TLC chose to abruptly change course and eliminate businesses, jobs, state revenue and a service millions of Texans use to order lottery tickets,” CTLO added.

Last week, the state’s largest courier company, Lotto.com, sued the TLC in an effort to prevent the agency from banning its services.

The lawsuit claims that the TLC “actively assisted in the setup and operation of Lotto.com and other couriers in Texas” before performing an “about-face,” prohibiting the industry under political pressure.