Texas Lottery restricts third-party couriers from selling online tickets

Lottery courier companies are now banned from selling tickets online in the Lone Star State after the Texas Lottery Commission unanimously voted against it. 

The regulation was a reversal of previous statements, as it followed the Commission’s earlier declaration that the services could not be regulated, yet criticism of the practice continued under the fear of illegal purchases by out-of-state or underage players.

Sergio Rey, the acting Deputy Executive Director of the Commission, announced that the new rules will be enforced immediately. He explained that the ban enables the Commission to swiftly revoke the lottery license of any retailer that knowingly collaborates with or supports couriers.

Two central issues, which are being investigated by Attorney General Ken Paxton’s office and the Texas Rangers, a division of the Department of Public Safety, sparked the law: a bulk purchasing valued at a $95m jackpot in 2023 won by a single group and the increase in third-party lottery ticket couriers.

Bulk purchases are reportedly verified to be prevented, according to courier representatives. However, since state law does not currently mandate such a verification process, the responsibility falls on the player’s discretion.

Only last week, Lotto.com filed a lawsuit requesting a judge to block the rule from being approved, but there has been no decision over this yet. 

In February, the Texas Senate approved a bill with unanimous support that would make online lottery ticket sales illegal. Senate Bill 28, written by State Senator Bob Hall, argued that the ban was insufficient. He suggested that the entire lottery should be more strictly regulated and even proposed the possibility of its abolition.

Hall said: “That was filed before we knew how bad it really was, when I was just thinking, ‘if we just get rid of the couriers, we solve the problem. Since then, the couriers are just symptomatic of what the problem is.”

The state lottery provides about $2bn annually to public schools and tens of millions to veterans’ programs. It remains to be seen how these funds would be replaced if the lottery were abolished.

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