Texas Administration Decides to Prohibit Courier Industry within Lottery Operations during a Heated Political Controversy
Posted on: April 30, 2025, 04:08h.
Last updated on: April 30, 2025, 04:08h.
Article Title: TLC Stamps Out Lottery Couriers, Slaps Retailers for Aiding their Operation* Texas Lottery Commission votes to ban lottery courier industry** Agency cites shady business practices and multimillion-dollar jackpot scandals as reasons for the ban* Industry critics see it as political maneuvering
In a tough stance against third-party lottery services, the Texas Lottery Commission (TLC) has put an end to lottery couriers, the intermediaries that allow lottery enthusiasts to purchase tickets via apps.
The commission's unanimous decision, announced on Tuesday, came after months of pressure from all corners, especially since the February revelation that the agency had been, in essence, green-lighting these services despite them being technically illegal[1]. Previously, the TLC had claimed it lacked regulatory power over couriers due to loopholes in the law[3].
Critics allege that the agency encouraged the courier industry to increase ticket sales, but now with the multimillion-dollar jackpot scandals shadowing them, the TLC is quick to pull the plug[1].
While telephone lottery sales and online gambling are outlawed in Texas, courier services argue they avoid these restrictions by merely offering a delivery service for lottery tickets[5].
Squeeze Play
Under the microscope since an infamous $95 million jackpot win by a European gambling syndicate in April 2023, the TLC has felt the heat from the legislature[1]. The scam involved three courier companies processing an astronomical 25.8 million tickets for the crooked group, allowing it to claim a piece of every possible combination of numbers[1]. With such a sure-shot, the syndicate was guaranteed a share of the jackpot, raking in millions more from secondary prizes[1].
"This is the biggest rip-off in the history of Texas," said Texas Lieutenant Governor Dan Patrick[1].
As a consequence of Tuesday's vote, the TLC is now authorized to revoke the licenses of retailers who knowingly support courier operations[1]. Apart from the TLC's actions, several bills are making their way through the legislature, aiming to impose similar restrictions[3].
Showdown
Effective immediately, enforcement actions will follow against violators, as outlined by Sergio Rey, the commission's newly appointed acting deputy executive director, following his predecessor's sudden resignation last week[1].
The Coalition of Texas Lottery Operators (CTLO), an industry advocacy group, believes a few bad apples have tarnished the industry's reputation, arguing that the commission's sudden u-turn lacks accountability and credibility[5].
"The TLC's decision to ban lottery couriers is the latest example of actions that have eroded the agency's transparency and integrity, particularly given the ongoing investigations," the CTLO stated[5].
Not one to back down, Lotto.com, the state's largest courier service, has already taken legal action against the TLC[3]. The lawsuit asserts that the TLC had actively assisted in setting up and running Lotto.com and other couriers before turning on the industry under political pressure[3].
- The Texas Lottery Commission (TLC) has banned lottery couriers, ending the practice of purchasing lottery tickets through apps, due to shady business practices and multimillion-dollar jackpot scandals.
- The TLC's decision, announced on Tuesday, follows months of pressure and the revelation that the agency had allowed these services, technically illegal, to operate.
- Critics see the TLC's move as a political maneuver, while the TLC claims it aims to increase transparency and integrity, given the ongoing investigations.
- In response to the ban, Lotto.com, the state's largest courier service, has filed a lawsuit against the TLC, alleging that the agency had assisted in setting up and running the service before turning on the industry under political pressure.
- The TLC is also authorized to revoke the licenses of retailers who knowingly support courier operations, and several bills are making their way through the legislature, aiming to impose similar restrictions.
- The $95 million jackpot scandal, involving a European gambling syndicate and three courier companies, has been a significant factor in the TLC's decision to outlaw lottery couriers and undermine the sports betting industry in Texas.
