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Indiana bans lottery courier services

Indiana state Senate passed a bill effectively banning courier services from the state.

Indiana State Capitol building
Halley Bondy

It’s another big loss for online lottery courier services in the U.S. As couriers try to mobilize through state red tape across the country, some states are fighting back - hard, and fast.

The Indiana Senate passed legislation this week to ban courier services from all state lotto gameplay.

As couriers try to mobilize through state red tape across the country, some states are fighting back swiftly.

House Bill 1053

House Bill 1053 stipulates, “Provides that the state lottery commission shall not operate or authorize the operation of a lottery courier service.”

Under the bipartisan bill, which must be signed by the governor, operating a courier service would be considered a misdemeanor.

The bill includes other gambling stipulations, including rules for wine dealers and the horse racing commission.

The deal with courier services

There’s been an explosion in courier services over the past few years, bringing lotto play online via private digital platforms. The biggest courier services include Jackpocket.com, Jackpocket.com, Lotto.com, theLotter, and Mido Lotto. These platforms allow users to play the lotto on their devices every step, until they collect winnings. The couriers act as third parties and purchase tickets from a retailer.

Each courier service contends with individual state laws, so their availability differs from state to state. Currently, services are available in dozens of states and Puerto Rico.

They often compete with state iLottery sites. On Indiana’s state-sanctioned lottery site, players can choose ticket numbers digitally, but they must verify them at a retailer.

"Online lotteries are not allowed in Indiana, and these couriers have skirted the law in other states – causing major issues for gaming regulators," said State Senator Ron Alting, the bill’s sponsor, in a statement issued last month. "With this bill, Indiana would ensure we don't have an unregulated online lottery industry with millions of dollars at stake."

Looking at Texas

Courier services have caused a huge stir in Texas, where the government approved an all-out ban in March.

The ban came in the wake of two scandals in the state.

The first occurred in 2023, when an entity called Rook TX won $95 million in a Lotto Texas draw after buying up 27 million tickets in every possible combination, implicating the Texas Lottery Commission and retailers in the process. In addition to banning lottery couriers, House Bill 1053 intends to address mass buy-ins, saying the law “requires the state lottery commission to adopt rules regarding the bulk purchase of lottery products.”

In February, an $83.5 million courier win propelled an investigation. Lt. Gov. Dan Patrick pointed out that the win was claimed on the Jackpocket app, it came from a building owned by Jackpocket, and the tickets were printed by Jackpocket in a hidden room. The connections raised eyebrows about courier services’ unregulated hold over the lottery process, which is based on trust.

In Indiana, Alting said in the statement:

“With the ever-changing world of online gaming and betting, lottery courier services have caused a lot of issues in states across the country. This bill would make Indiana more proactive in restricting the practice before it reaches our borders."

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