Only two weeks following the Texas Lottery Commission (TLC) revealing its decision to prohibit lottery courier services in a significant policy reversal, the agency announced on Tuesday that it had launched several investigations into retailers linked to the contentious practice.
Lottery courier services enable users to choose their numbers and buy tickets via a mobile application. The courier subsequently completes these orders by obtaining physical tickets from a licensed physical retailer. After being bought, the tickets are scanned and forwarded to the customer for verification.
Because of the large number of ticket requests, couriers collaborate with licensed retailers that possess multiple lottery terminals to effectively handle bulk orders. In certain instances, the couriers manage and operate these retail sites independently.
TLC Under Pressure
Prohibiting couriers signifies a significant policy change by the TLC, which had previously welcomed these businesses for digitizing lottery ticket purchases, boosting ticket sales, while remaining technically within legal limits.
The reversal occurred during heightened legislative examination of the commission, along with a warning from Lt. Gov. Dan Patrick (R) that the lottery would be eliminated entirely if couriers were not prohibited.
Due to the bulk-purchasing features offered by couriers, a European syndicate managed to acquire 25.8 million tickets, sufficient to cover every potential winning combination for the April 22, 2023 draw.
Following 93 rollovers, the jackpot reached $95 million, indicating it was mathematically exploitable to anyone with $25.8 million available. The syndicate won the jackpot along with millions in additional prizes.
It wasn't unlawful, but it also wasn't just for regular Texas lottery participants, and many attribute the responsibility to the TLC. It's no surprise the commission is attempting to appear occupied.
Taking Steps
On Tuesday, TLC executive director Ryan Mindell informed the Texas House Committee on Licensing and Administrative Procedure that his agency had “taken action” against merchants linked to couriers due to existing rule infractions.
Mindell stated that many had either willingly given up their lottery vendor licenses or ended their association with couriers. A spokesperson for TLC later informed the Nexstar Media Group that investigations into the compliance of seven couriers are still ongoing.
The TLC declared on March 4 that it would ban courier services and that any retailer collaborating with one of these services could face revocation of their ticket sales license. Nonetheless, the policy alteration must undergo a 30-day public comment phase prior to implementation.
At the same time, the state Senate unanimously moved forward with a bill that would clearly prohibit courier services in Texas law. A measure put forth in the House, on the other hand, supports the regulation of couriers and prohibits the large-scale acquisition of tickets.
The Texas Rangers are presently looking into two jackpots that were claimed with the help of couriers, including the one from April 2023.