On Monday, the executive director of the Texas Lottery Commission announced intentions to prohibit couriers from purchasing lottery tickets, citing state law’s prohibition of such actions. This marks a shift from the commission’s long-held stance that it lacked authority over third-party sales.
Since 2016, the commission asserted to retailers and lawmakers that it couldn’t regulate couriers, who enable customers to buy lottery tickets remotely. However, in a policy update, the agency now deems the practice illegal and seeks to terminate lottery licenses of stores selling tickets to couriers. This update comes shortly after a commissioner’s resignation and vocal demands by legislators, including Lt. Gov. Dan Patrick, to ban couriers outright.
Executive Director Ryan Mindell revealed that the decision follows a state law review and findings from retailer investigations. He intends to propose this rule at the commission’s March 4 board meeting. “Lottery courier services in Texas have been a significant concern for many of our stakeholders,” Mindell stated. He emphasized his dedication to enhancing the public’s perception of Texas Lottery games since assuming his role less than a year ago.
Despite the new guidance, criticism persists, particularly from Patrick, who investigated a recent $83.5 million jackpot won through a courier-sold ticket. Patrick, overseeing the Texas Senate, indicated the new changes wouldn’t halt his inquiry or efforts to legislate a ban on couriers. He described Mindell’s statement as lacking substance and overdue.
Patrick contended on social media that the commission had authority all along and allowed businesses to undermine the Texas Lottery’s integrity. In a parallel move, Gov. Greg Abbott announced an investigation into the recent jackpot win, instructing the Texas Rangers to lead the probe. Abbott also called for an investigation into a prior $95 million win by a foreign group that executed a large-scale bulk ticket purchase.
State law mandates in-person lottery ticket purchases, a process couriers circumvent by allowing customers to remotely pay for them. Couriers, unlicensed to sell directly, often partner with or are part of licensed storefronts.
The commission detailed 13 state law provisions couriers violate, including bans on sales to minors and restrictions that affect a drawing’s outcome. It requested an opinion from the Attorney General to ascertain its authority on the issue, with formal regulations prohibiting couriers expected by April.
During a House budget hearing, Mindell attributed his decision to feedback from Senate lawmakers and findings from internal investigations. “We received that direction from the Legislature,” he explained. He emphasized the necessity of stopping this activity.
Rep. Brian Harrison, R-Midlothian, challenged Mindell’s assertion, arguing that policy shouldn’t hinge on comments from specific lawmakers during committee hearings. He stressed that established statutes and language govern the commission’s actions.
The debate unfolded as the Senate considered Senate Bill 28, a proposal co-authored by the majority to ban couriers. Concurrently, Rep. John Bucy III, D-Austin, submitted a House bill advocating a state licensing system for couriers. Although only three states have courier licensing programs, 18 regulate couriers. The Coalition of Texas Lottery Couriers, represented by Texas’s largest couriers, expressed willingness to collaborate with Bucy on implementing the initiative responsibly. According to a Legislative Budget Board estimate, couriers contribute over $173 million in lottery sales.
The coalition highlighted issues such as bulk purchases and underage orders as unacceptable. They stressed the importance of maintaining public trust in courier operations and voiced eagerness to work with Bucy on advancing the proposed legislation.
