The Texas Lottery Commission has voted unanimously to ban third-party courier services from selling lottery tickets online, following increasing pressure from lawmakers and ongoing investigations into the industry.
The decision, made on 29 April 2025, marks a major reversal in the commission’s previous stance. Previously, officials had argued that they lacked the legal authority to regulate lottery couriers. These services, including major operators like Jackpocket and Lotto.com, allowed customers to purchase tickets online or through mobile apps.
The couriers used to buy the physical tickets from licensed retailers, often businesses they own themselves, and provide digital copies to users. Although the services have operated in Texas for nearly a decade, concerns have grown among lawmakers that online sales could enable illegal purchases by out-of-state players or minors.
Licence to be revoked if exploiting grey areas
There are also fears that these services exploit legal grey areas and undermine the spirit of Texas’s in-person lottery regulations. The new rule empowers the commission to revoke the licence of any retailer immediately found knowingly collaborating with courier companies. According to Sergio Rey, the commission’s acting deputy executive director, enforcement of the regulation will begin without delay.
The matter has also attracted the attention of law enforcement, with investigations into the lottery’s links to courier services currently being led by the Texas Attorney General’s office and the Texas Rangers, a division of the Department of Public Safety.
One primary rationale behind this move could be that investigations were prompted in part by a controversial incident in April 2023, when a group allegedly collaborated with couriers and retailers to purchase 99 percent of all possible ticket combinations in a draw, securing a $95 million (€84 million) jackpot.
Turmoil persists in the commission
The ban comes amid a period of turmoil for the commission. Executive director Ryan Mindell resigned last week, and Commissioner Clark Smith stepped down earlier this year. Meanwhile, State Senator Bob Hall and Lieutenant Governor Dan Patrick have both expressed concerns that banning couriers is not enough and that the entire lottery system may require stricter oversight or even abolition.
Despite accounting for less than 10 percent of lottery revenue, courier services have outsold many traditional retailers. In 2024, Jackpocket and Lotto.com alone sold over $226 million (€199.1 million) in tickets, compared to $34 million (€27.4 million) sold by the top five physical retailers combined.
The commission is also undergoing a routine Sunset Review, a process that requires lawmakers to vote on whether to continue the agency’s existence. The Texas House has proposed a budget that would strip the commission of its funding entirely, threatening programmes that currently provide around $2 billion (€1.7 billion) annually to public schools and support for veterans.
