Following a public hearing, Texas Lottery seems ready to ban couriers

The Texas Lottery Commission (TLC) held a public comment meeting yesterday to listen to those in the area regarding potential changes. The current rule adjustment that's up for proposal would essentially ban lottery courier services from the state.

While the TLC doesn't have any power over the actual couriers, it can discipline retailers in the state that don't obey the rules. This potential amendment would terminate any retailer license in Texas that continues to work with these companies.

Couriers seem like they would strictly be helpful, but lots of them operate in gray areas in multiple states. For instance, online gaming is illegal in Texas, and that includes lottery.

This, along with a couple of irregular jackpot wins in the state through couriers, have us where we are today.

Lottery couriers on the brink of being banned in Texas

The TLC allowed residents to voice their opinions at a hearing Thursday after it decided to move forward with this potential ban on couriers last month.

Unfortunately for these third-party services, many of their headlines have been negative with regard to the Texas Lottery.

Initially, there was the $95 million jackpot win in 2023 from a Lotto Texas drawing that raised eyebrows. Nearly 26 million tickets were purchased for the one draw, thus “fixing the odds” for the European group that took home the prize.

More recently, Texas Lt. Gov. Dan Patrick opened an investigation around another sizable Lotto Texas win in the state. Unlike the 2023 jackpot, this recent winner was actually informed she may not receive the money at all.

So, as the TLC determined its next steps, it gave the floor to those who wanted to share their opinion.

The first speaker was Paul Hardin, the president of the Texas Food and Fuel Association. This group accounts for about 16,500 convenience stores and gas stations in Texas, providing around two-thirds of the state's lottery ticket sales.

He spoke in favor of the proposal, citing that couriers are a threat to the TLC's integrity. Hardin said:

If consumers lose confidence, then they might move away from lottery purchases altogether.

Lotto.com defends courier services

The only other speaker was Rob Porter, who is the chief legal officer of Lotto.com, a courier service. He also represented the Responsible Courier Coalition, which includes his company, along with fellow courier platforms Jackpocket and Jackpot.com.

The TLC's draft for the rule change stated the following for the first five years of its implementation:

There will be no significant fiscal impact for state or local governments as a result of the proposed amendments.

Porter completely disagreed with that, claiming couriers have combined to generate more than $100 million in the state. While he did acknowledge certain concerns around couriers, like with underage individuals using the apps, he explained the following, as well:

While I understand these could be concerns in other jurisdictions, they haven't been here. There's certainly not justification for taking this drastic step of banning a lawful practice.

Porter is hoping the TLC will wait for the state legislature to rule on whether couriers are legal or not, despite the Texas Senate already passing a bill to ban them.

The public comment time frame is still open regarding this matter until April 22. The TLC will make its final vote on April 29.