A recent lottery jackpot in Texas was hit using a lottery courier, drawing the attention and scrutiny of Governor Greg Abbott and the ire of the Texas Lottery Commission.
Texas Turmoil
The Texas Rangers, at the behest of Governor Abbott, have been directed to investigate two lottery jackpot wins, including an $83.5 million ticket that was purchased at Winners Corner TX in Austin earlier in February and a $95 million Lotto Texas jackpot won in April 2023 in which “nearly every possible number combination” was played.
The most recent lottery win involved a third-party lottery app, Jackpocket, that also owns the store where the lottery ticket was purchased. Jackpocket is referred to as a lottery courier and was purchased last year by Boston-based DraftKings for a reported $750 million.
“Texans must be able to trust in our state’s lottery system and know that the lottery is conducted with integrity and lawfully,” Abbott said in a news release. “Today, I directed the Texas Rangers to fully investigate these incidents and identify any potential wrongdoing. Texans deserve a lottery that is fair and transparent for everyone.”
The Texas Lottery Commission also announced it is banning lottery courier services while Texas Lottery Commissioner Clark Smith, appointed in 2023 by Governor Abbott, announced his resignation on Friday. The Senate Committee on State Affairs met on Monday to discuss Senate Bill 28, which would ban couriers and insist that the Lottery Commission adopt policies to enforce it.
TLC Caught in the Crosshairs
The Texas Lottery Commission was put in an awkward position after it had stated to retailers and state legislators in 2016 that it had no regulatory authority or governance over lottery couriers. However, upon hearing that the Texas Rangers would be investigating two lottery jackpot hits, it not only banned lottery couriers but also declared a maximum of five lottery terminals would be allowed at retailers.
Lt. Gov. Dan Patrick put the TLC on blast, posting on X: “I’ve never read so much garbage from a state agency press release in my 18 years in office. After years of claiming they had no authority to regulate lottery couriers, today the Texas Lottery Commission suddenly exercised the ultimate regulatory authority by banning all lottery couriers in Texas. (…) Today’s action is an obvious admission that the Texas Lottery Commission had the oversight authority all along and allowed these businesses to creep into Texas and undermine the integrity of the Texas Lottery,” he said.
The investigations and banishment of lottery couriers in the state spurred immediate backlash from the Coalition of Texas Lottery Couriers, which includes Jackpocket, who told a local NBC affiliate in Austin, “Lottery couriers have been legally and responsibly operating in Texas since 2019, while always maintaining a transparent and professional relationship with the Texas Lottery Commission.”
“Throughout this process, the TLC has claimed to have no regulatory authority over courier activities, despite couriers’ persistent requests to be regulated, just as we are in other states. Today’s decision by the TLC to ban lottery courier services is abrupt, disappointing, and unnecessary,” the statement said. “We will continue to encourage a regulatory solution, such as the one proposed by HB 3201, which allows our millions of Texas customers to continue to safely and conveniently order lottery tickets using our services.”
