That's it for courier services — unanimous decision kicks couriers out of Texas
Includes video report
By Kate Northrop
The Texas Lottery Commission voted to officially ban lottery couriers in Texas and approved rules that allow the agency to take action against the license of any retailer in violation.
It's official — lottery couriers are banned in Texas after the Texas Lottery Commission (TLC) formally voted to approve a policy change proposed in February.
During the TLC meeting on Tuesday, commissioners unanimously voted in favor of banning lottery couriers after enduring months of pressure and scrutiny from disgruntled legislators about two Lotto Texas jackpot wins involving courier services.
The initial policy statement was issued by then-Texas Lottery Executive Director Ryan Mindell, who resigned from his position last week, to "align with state law and legislative efforts to address the serious concerns from players and state leadership," Lottery Acting Deputy Executive Director Sergio Rey said during the meeting.
The ban consists of amendments to three lottery rules relating to the suspension or revocation of retailer licenses, penalties, and restricted sales. It requires the TLC to revoke the license of any retailer that works in concert with a courier service via ownership, private arrangement, or otherwise.
During the 30-day public comment period leading up to the vote, the Texas Food & Fuel Association, which represents over 16,500 common brick-and-mortar retail businesses including convenience stores, truck stops, and gas stations, voiced support for the amendments. Physical lottery retailers have historically opposed direct online ticket sales and lottery couriers, citing fear that online sales detract from ticket sales that bring in additional foot traffic.
However, sales data from other state lotteries, such as North Carolina, has shown that retail ticket sales grew at a faster pace than in states that did not offer direct online sales.
The Coalition of Texas Lottery Couriers, which is comprised of courier companies like Jackpocket, Jackpot.com, and Lotto.com, opposed the policy amendments during the public comment period, with Lotto.com Chief Legal Officer Rob Porter making a final plea to commissioners to consider the repercussions a sweeping ban on couriers would have on lottery revenue and players.
According to Porter, banning courier services would harm responsible private business that contribute "millions of dollars" to the state, jeopardize the jobs of dozens of Texans, and cut off 5% of lottery sales revenue on an annual basis. However, that figure could be even higher, since lottery couriers accounted for about $173 million in revenue in 2023, or as high as 9% of the Lottery's total draw game sales.
Additionally, the ban disenfranchises elderly seniors, disabled residents, shift workers, and others who cannot physically travel to a retailer to play the lottery.
Lotto.com filed a lawsuit against the Texas Lottery on Thursday to reverse its "about-face" decision to ban courier services.
Lottery Commissioner Mark A. Franz said he had originally voted against the ban on March 4 when it was initially proposed since he believed that the actions the agency had taken against bulk purchasing were enough. He felt it would be best to wait for state legislature to come to a final decision on how they would like to regulate couriers before acting prematurely.
After "weighing the evidence," however, Franz told fellow commissioners that he was persuaded that "doing the maximum allowable amount under our current statute" was the optimal way to proceed for now. Then, he reasoned, the TLC should wait to see what legislators officially decide, and the TLC would follow and "fine-tune" the direction handed to them by the state.
If legislators decide to regulate couriers instead of banning them, Lottery General Counsel Bob Biard clarified, the TLC would need to once again adopt new rules to implement the law, and the current amendments would be repealed or modified to conform to it.
VIDEO: Watch the commission meeting
Not a very good idea. Just regulate them. I hope this is not some abracadabra to enable them to wiggle out of paying the big winner.
Meanwhile, Megamillions sales are still 50% lower in the number of tickets sold since the increase to $5.00 per ticket change.
Worse, the jackpot creeps up by $10 million a draw. We'll get to $1 billion by 2026 at this rate.
The people have spoken! 5 bucks is ridiculous! I miss the dollar days...
Why would you want an entity playing. That can buy every possible combination?
MM may have to go back to the $2 dollar rate if it takes that long to reach a billion. Like kill it in a few months while PB surges past by.
I feel bad for Texas residents losing access to lottery couriers. This was all started because of that jackpot buyout, and the lottery allowed people who have no idea what they're talking about to convince legislators to think couriers had something to do with it. I like the folks at the Texas Lottery, but this one is on them. Sadly, the lottery will lose revenue and Texas residents will be disenfranchised and lose access to a valuable service.
they're not going back to $2. Wish it was $3. that option.
For now, we still have a lottery. I think that's what all the wrangling is about. The lawsuits have forced the states hand to protect the people of Texas.
Texas has the 4th largest lottery in the nation, about $8.5 billion annually. Don't think it will collapse losing $173 million.
It's also a win for the brick and mortar retailers, many of who are local mom and pop operations. That lottery ticket sale to them means additional revenue in the form of soda, chips, a sandwich, etc. Third party couriers could mean the difference in their ability to survive.
The only people who offered support was the third party couriers themselves who were voting to fill their pockets and not in the best interest of the people of Texas. Lottery.com offering their voice is laughable. They file a lawsuit saying the commission doesn't have a ban, so when the commission meets to approve a ban, they show up to prevent it. What choice did the commission have?
These third party couriers are afraid other states will soon follow Indiana and Texas in banning their activities with good reason. When they question how much these online places actually contribute vs how much they take out of the local economy, it's a no brainer.
* l wonder if AG Ken Paxton had anything to do with this, he's notorious for sticking his nose in stuff he should leave well enough alone. Just saying..
😝
You feel bad that a corporation can't swoop in and buy all the winning combinations? I just wish out of state players could play game from different states. Perfect example is my state switched to random number generator games. I would like to have the option to play ball draw games in a different state. Because my state no longer has them. But I know it would turn into the Texas situation. Mabye one day they will figure something out. But it's definitely not going to be today. 😜
I've got a feeling we're not out of the woods yet as to whether the lottery is going to survive in Texas. There are legislators that have wanted to kill it and with it being zeroed out of the budget, this may be it. Time will tell.
I agree. We're far from our of the woods. With lawsuits on both sides the state finds itself trying to patchwork their actions to motivate the circumstances.
Texas is turning into the battle ground between states and third party couriers. Couriers realize if they lose here their existence nationwide is endangered. If the states lose it becomes open season on any and all lotteries by those who have the money to buy it.
It's in the interest of the small money players not to be taken in.
If you lean to the belief the lottery is a tax on the poor, Senator Hall and the commission look like champions of the poor.
Senator Hall's question about money laundering is still open. But when you have someone in the Isle of Man sending money to Malta where it's routed to London, and thru an attorney's Detroit office to buy out the Texas lottery for an investment group, Rook TX, incorporated in Delaware, what do is there to think?
Right now the State is in a good place to not lose the lottery, if they take the proper steps to ensure it stays in the hands of the small money players.
I still hope the lottery will weather this mess. But it is far from over
Point taken (or given). The large corporations don't even play a lottery until it is large enough to provide a profit. The small money every draw players continually contribute and the vultures swoop in to buy it.
In Texas as long as the couriers were responsible in their actions, there was no problem. But once they saw the opportunity to stuff their pockets with state money, they forgot that responsibility.
The small money players lose to the vultures willing to buy a lottery and to the couriers who charge a fee for their service.