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A legal battle is brewing in Texas that could reshape how lotteries are played online. Lotto.com, one of the nation’s largest lottery courier services, has filed a lawsuit accusing the Texas Lottery Commission of an abrupt and unlawful ban on third-party ticket delivery.
The company claims it had long worked with state officials, only to be cut off without warning. The lawsuit follows controversial jackpot wins and mounting political pressure, including criminal investigations and the recent resignation of the commission’s executive director.
New lawsuit filed
On Wednesday, April 23, 2025, Lotto.com filed a lawsuit against the Texas Lottery Commission (TLC). The company, which is one of the nation’s biggest online lottery courier services, states the TLC’s recent move to ban online courier services — third-party companies that buy and deliver lottery tickets on behalf of customers — is unfair and illegal.
According to Lotto.com, they argue that the TLC changed the rules in the state without warning. They claim this change comes after previously allowing and even helping Lotto.com and other lottery courier services to operate in Texas.
The lawsuit states Lotto.com worked closely with state officials to make sure they were following the law. They claim they even received permission to use official state logos and state-approved equipment when the company first started operating throughout Texas in 2022.
Lotto.com claims the TLC asked them to help brainstorm ways to prevent jackpot manipulation. The lawsuit states, “In return, the Commission changed the rules on the fly and without due process.”
The Texas Lottery controversy
So, what got us to this point in Texas? This controversy is linked to two major lottery drawings in the state.
The first goes back to April 2023, when a $95 million Lotto Texas jackpot was won. The winner of that jackpot happened to purchase nearly all 25.8 million possible number combinations using a lottery courier service.
Then, in February 2025, one ticket matched all the winning numbers to win the $83.5 million Lotto Texas jackpot. That winning ticket was also purchased using an online courier service, which prompted concerns about the legality of such services. However, in this case, the lucky winner only purchased $20 worth of tickets, not 25.8 million tickets.
In February, Gov. Greg Abbott directed the Texas Rangers to investigate the winnings. At the same time, the TLC issued a policy change that banned lottery couriers in the state. They argued that these courier services violated state laws by allowing money laundering and the sale of fake lottery tickets.
Another investigation was launched by Texas Attorney General Ken Paxton into the state’s lottery system a little while later. Because of these investigations and rule changes, Jackpocket, another courier service that was operating in the state, suspended its operations in Texas.
At the same time, Texas state senators passed a bill, which prohibited the purchase of Texas Lottery tickets through a courier. Senate Bill 28 still needs to be passed in the Texas House before it becomes law.
With all the drama and investigations surrounding the agency, TLC Executive Director Ryan Mindell announced his resignation on Monday, February 21, 2025. The commission’s CFO, Sergio Ray, stepped in to serve as acting deputy executive director and the TLC board will meet next week to determine how they will select their next executive director.
The Coalition of Texas Lottery Couriers has been adamant with pushing back on these bans. They argue that the companies, like Lotto.com and Jackpocket, have repeatedly asked to be regulated since they started operating in Texas.
Enjoy playing the Texas Lottery, and please remember to play responsibly.
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