Texas officials respond to growing concerns over unregulated lottery ticket sales

Austin, Texas – The Texas Lottery Commission has taken a major step toward banning lottery ticket courier services in the state. On Monday, February 24, Executive Director Ryan Mindell issued a policy statement announcing that these services are not permitted under Texas law. As a result, the agency will move forward with proposed rule amendments to formally prohibit them. This policy is now in effect and aligns with legislative efforts to address concerns about transparency, security, and the integrity of lottery operations.

Under the proposed amendments, any retailer found collaborating with a courier service will have their lottery ticket sales license revoked. These rule changes will be presented to the Texas Lottery Commission board at an open meeting scheduled for March 4. Following a 30-day public comment period, a final decision on adopting the amendments will be made at an April meeting.

Concerns Over Unregulated Courier Services

Lottery courier services are companies that take online orders for tickets from customers, purchase those tickets from licensed retailers, and then hold them until a winner is determined. Customers are often provided with scanned copies of their tickets, while the original remains in the possession of the courier. These services charge a fee for handling ticket purchases and managing winnings.

Critics argue that the absence of regulatory oversight leaves customers vulnerable to fraud, mismanagement, and potential violations of state law. “The Texas Lottery was established to provide a secure and transparent system for players to purchase tickets in person from licensed brick-and-mortar retailers,” said Mindell. “Lottery courier services operating in Texas have been a significant concern for many of our stakeholders.”

Mindell emphasized that after reviewing the agency’s authority under the State Lottery Act and recent investigations into retailer partnerships with couriers, the commission has determined that banning these services is necessary. “We are moving to prohibit courier services in Texas to ensure all ticket sales comply with state law and agency regulations, as well as to maintain public trust.”

Impact on Public Confidence and Legal Compliance

Concerns about the role of lottery courier services have grown in recent years, with calls for stricter regulation and oversight. Lawmakers have introduced multiple bills in the Texas Legislature to ban these services, including HB 389, SB 28, and SB 79. The scrutiny surrounding these businesses intensified following a recent high-profile $83.5 million Lotto Texas jackpot win, where the winning ticket was purchased through a courier service.

This incident, combined with a separate case involving a bulk purchase of nearly all possible number combinations in April 2023 that led to a $95 million jackpot win, has prompted a broader investigation into Texas Lottery practices.

“Our priority is to protect the security and integrity of the Texas Lottery and the public’s confidence in our games,” said Texas Lottery Commission Chairman Robert G. Rivera. “By this rule proposal, the agency will take decisive action to ensure that ticket sales remain in full compliance with state law.”

Governor Greg Abbott has also stepped in, directing the Texas Rangers to investigate the two major incidents involving lottery wins through bulk purchases and courier services. “Texans must be able to trust in our state’s lottery system and know that the lottery is conducted with integrity and lawfully,” Abbott stated. “I have directed the Texas Rangers to fully investigate these incidents and identify any potential wrongdoing.”

Strengthening Oversight and Regulation

The Texas Lottery Commission remains committed to ensuring that all ticket sales are conducted within a well-regulated system. By moving to eliminate third-party courier services, the agency aims to reinforce public trust and prevent potential fraud.

The proposed changes will undergo a public review process before a final decision is made. With support from lawmakers, state leaders, and regulatory authorities, Texas is taking decisive action to ensure its lottery operations remain fair, transparent, and compliant with state law.