DraftKings Responds to Courier Services Legitimacy Accusations

The recent Lotto Texas jackpot win raised questions about the legitimacy of lottery courier services and officials came out denying said services are doing anything illegal.

Courier Services Being Criticized Over Legitimacy

To start with some context, Lotto Texas recently saw someone win $83.5 million, the lucky ticket being sold at the Winners Corner TX LLC store on Rockwood Lane. This is the fifth-largest in the history of Lotto Texas and the winner currently wants to remain anonymous. However, many state residents are questioning whether it was legit since the ticket had been purchased via a lottery courier service.

Faith in the legitimacy of courier services started to fade in 2023 when a suspicious European lottery syndicate won a $95 million jackpot by buying up 25.8 million tickets. This was enough to cover all possible winning combinations, which effectively guaranteed a win.

Last week, Dawn Nettles, the founder of LottoReport.com, a lottery watchdog, filed a much-publicized class-action lawsuit. Nettles accuses former Texas Lottery CEO Gary Grief of “fraudulently” setting the stage for a “criminal conspiracy” that enabled the European syndicate to manipulate the system, primarily by promoting the operation of lottery courier services in Texas.

It should be noted that the latest winning ticket was purchased via a so-called lottery courier, Jackpocket.com, which DraftKings owns. These businesses enable Texans to select their numbers and purchase tickets via an app. The courier then fulfills the order by buying the tickets from a licensed physical lottery retailer. Afterward, the courier scans the tickets and returns them to the customer.

Lt. Gov. Dan Patrick also questioned the legitimacy of courier services and the legality of how these companies work. Opponents of courier services have been trying to get them banned for a while, but the last measure ultimately died in the House. However, Patrick added that a similar bill will be put forward again this year.

DraftKings Deny Ruined Legitimacy Claims

According to Peter Sullivan, Senior Vice President of Lottery at DraftKings, there is a misconception that Jackpocket (one of these couriers) is buying all these tickets to try to win itself. He explained that they are bought on behalf of customers who have been age and geo-verified and are playing the games on an individual basis. It should be noted that DraftKings owns Jackpocket after acquiring the service for $750 million last year, so the defense of the courier also aligns with the company’s business goals.

We are trying to create a more convenient way for customers inside the state of Texas to play the game they already know and love in a trustworthy and mobile-based manner.

Peter Sullivan, Senior Vice President of Lottery at DraftKings

Sullivan said the couriers are not doing anything illegal and are simply trying to create a more convenient way for Texas customers to play the game. He said that once the order is received, the company goes to a licensed retailer to purchase a paper ticket. The ticket is then scanned by Jackpocket and sent back to the customer.