Texas Lottery Commission Puts Forward Ban on Lottery Couriers

The Texas Lottery Commission has put forward a proposed ban on lottery courier services amid recent controversies. Local authorities have long argued that such products undermine the integrity of the lottery and are akin to online gambling.

Lottery Couriers Have Stirred Controversies

Lottery couriers are services, which purchase lottery tickets on behalf of players and automatically redeem smaller sums. While such firms usually charge fees for their services, the convenience they offer has been very well received by regular lottery players.

However, lawmakers in Texas have questioned the legality of these services, which could be interpreted as online gambling. Additionally, some scrutinized the nature of couriers as they allow players to purchase a huge volume of tickets and basically guarantee themselves a win.

Concerns increased in 2023 when a lottery syndicate won a $95 million jackpot after using such a service to buy a staggering 25.8 million tickets. As a lottery player in Texas just won $83.5 million with a ticket purchased through popular lottery courier Jackpocket, the issue was once again raised in the state.

Texas Lottery Commission Seeks to Prohibit Lottery Couriers

The Texas Lottery Commission has now proposed a new policy that prohibits courier services, citing transparency and fairness issues as the reason for the motion. The rule amendments were submitted by commission executive director Ryan Mindell and would introduce harsh punishments for violators. Lottery sales agents that collaborate with courier services, for example, would risk losing their licenses.

The rule is set to be formally presented at the Texas Lottery Commission’s upcoming March meeting. If approved, the commission will provide the public with 30 days to submit comments before enacting it.

The commission has long envisioned such a ban but had been uncertain whether it had the powers to enforce it. However, recent events led it to believe that such action was needed.

Action against lottery services has gained the support of Robert G. Rivera, chairman of the Texas Lottery Commission. Lieutenant Governor Dan Patrick has likewise been a firm opponent of lottery couriers, citing many of the aforementioned points as the reason for his stance. He has championed a ban on such services for a while and is has promised to once again introduce a bill that cracks down on lottery couriers.

DraftKings Defended Lottery Couriers

In the meantime, DraftKings, which owns the Jackpocket app, recently dismissed the legitimacy accusations, saying that it is just trying to “create a more convenient way for customers inside the state of Texas to play the game.”

Jackpocket refuted the misconception that courier services are buying tickets to try to win for themselves and explained that all of the tickets offered via Jackpocket are bought on behalf of customers who have been age and geo-verified and are playing the games on an individual basis.

DraftKings acquired Jackpocket in 2024 for a total of $750 million.

Texas Lottery Official Resigns

In the meantime, the Texas Lottery Commission confirmed that its member Clark Smith has resigned as the scrutiny over the department continues.

Smith joined the commission in 2023. His term as originally set to expire in 2029.