Texas Bans Online Lottery Ticket Sales Through Courier Services
Lottery courier companies in Texas are now prohibited from selling tickets online following a unanimous decision by the Texas Lottery Commission. This move marks a significant shift from earlier statements where the Commission had indicated that these services could not be regulated. Despite that earlier stance, ongoing criticism persisted, driven by concerns over illegal purchases involving out-of-state or underage players.
Sergio Rey, who serves as the acting Deputy Executive Director of the Commission, announced that the new regulations would take effect immediately. He clarified that the ban allows the Commission to quickly revoke the lottery licenses of any retailers found to be knowingly supporting or collaborating with courier services. The decision was influenced by ongoing investigations into two major issues: a large bulk purchase related to a $95 million jackpot won in 2023 by a single group, and a noticeable rise in third-party lottery ticket courier services. These matters are currently being examined by Attorney General Ken Paxton’s office and the Texas Rangers, a division of the Department of Public Safety.
While courier representatives claim that bulk purchases are being prevented and verified, state law does not explicitly require such verification. As a result, the onus remains on individual players to ensure their purchases adhere to legal standards. Last week, Lotto.com filed a lawsuit seeking to block the implementation of the new rule, but no decision has been made in that case yet.
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In a related development, the Texas Senate passed a bill in February with unanimous support that aims to make online lottery ticket sales illegal. Senate Bill 28, authored by State Senator Bob Hall, contended that the current ban was inadequate. He argued for even stricter regulation of the lottery and went as far as suggesting the possibility of abolishing it altogether. Hall remarked, “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 Texas lottery generates approximately $2 billion annually, which is allocated to public schools, along with tens of millions directed toward veterans’ programs. It remains uncertain how these vital funds would be replaced if the lottery were to be abolished entirely.
