Down in Texas, a gaming organization recently shared a new measure to help mitigate irregular activity in the state lottery activities. Per a recent report, the Texas Lottery Commission has put forward a proposed ban on lottery courier services amid recent controversies. Additionally, local authorities have long argued that such products undermine the integrity of the lottery and are akin to online gambling. More specifically, lottery couriers are services that 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 would 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.
In this report, SBS will be going over what to look for from the latest gaming news coming from the Lone Star State, as well as some additional notes and thoughts regarding Texas gaming.
Also covered in the recent report, courier issues 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. Recently, 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.
Also covered in the article, 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 penalties 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.
Noted in the report, 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. Additionally, 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 has promised to once again introduce a bill that cracks down on lottery couriers.
In the meantime, the report says, DraftKings, which owns the Jackpocket app, recently dismissed the legitimacy of 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 also 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.
Additionally, another report says, late last month, the Texas Lottery’s new director said he’s taking action on courier services “to address serious concerns raised by players and state leadership regarding the integrity, security, honesty and fairness of lottery operations.”
“Previously, the agency interpreted its authority as not extending to the regulation of prohibition of these services. Since I became executive director less than a year ago, I have been keenly focused on making changes to improve the public’s perception of Texas Lottery games and how they are played and operated,” Mindell said. “In recent days, our agency conducted a review of our authority under the State Lottery Act. As a result of this review and information from recent retailer investigations, the Commission will revoke the license of a retailer that works with or assists a courier service, and we are moving to prohibit courier services in Texas to ensure all ticket sales comply with state law and agency regulation as well as to maintain public trust.”
In other Texas gaming news, 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 and his term was originally set to expire in 2029.
After you are all up to speed in relation to the latest gambling news and updates coming from the Lone Star State, make sure to check out the excellent array of info for you at SBS. For additional analysis on the topic covered here, the sports betting in Texas guide has you covered with a variety of notes and articles regarding gaming in the state and more. On a separate note, for those who qualify and are on the go, the best betting apps rundown is a fantastic page to learn more about the nuances of mobile betting if you are eligible. Finally, for those that are interested in diversifying their payment options, look no further than the payment methods breakdown. On this page you can find a variety of options from traditional routes to crypto.