The Texas Senate unanimously moved forward a bill on Thursday that would render lottery couriers illegal in the state, while a trade group representing the couriers advocated for regulation instead of a ban. 

The Coalition of Texas Lottery Operators (CTLO) feels that some negative individuals 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 encompass the bulk purchase of tickets. 

CTLO claims it has advocated 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 Operate? 

Couriers enable players to select their numbers and purchase tickets through an app. The courier will complete the order by purchasing tickets from an authorized physical lottery retailer. 

However, they have sparked significant controversy in Texas after multiple couriers assisted a European syndicate in securing a $95 million jackpot in April 2023. 

The syndicate successfully purchased every potential combination of winning numbers – totaling 25.8 million – by collaborating with three lottery couriers that enabled the processing of tickets at an industrial level. Typically, the Texas Lottery distributes 1 to 2 million tickets weekly. 

This significantly lowered the odds of regular Texans clinching the top award. At most, they would merely be dividing it. 

The Texas Lottery Commission faces allegations of allowing courier services without the legislature's clear approval. Critics argue that the commission established circumstances that would eventually enable 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 coalition consists of the three major couriers functioning in Texas: Jackpocket.com, Jackpot.com, and Lotto.com. 

Texas Lottery Commissioner Steps Down 

Last Friday, amid significant legislative scrutiny, Texas Lottery Commissioner Clark Smith stepped down. On Monday, the commission announced it would prohibit lottery courier services and annul the license of any retailer that sold tickets to these companies. 

Purchasing all potential combinations of the Texas Lottery is not against the law, but the couriers facilitating this operate in a murky zone. 

Although Texas law bans the sale of lottery tickets over the phone and prohibits online gambling, lottery couriers assert they occupy a legal gray area as they only offer a delivery service for lottery tickets. 

Earlier, the commission maintained that lottery couriers were lawful but claimed it lacked the authority to regulate them, as this would necessitate a mandate from the legislature.