A ban on lottery courier services took effect Tuesday morning after a unanimous vote by the Texas Lottery Commission (TLO). The ban comes only a week after the resignation of the Texas Lottery Commission's executive director in the face of increased scrutiny directed at the organization from top leaders and lawmakers across the state.
After the ban was approved, acting executive director Sergio Rey said the commission would begin enforcing it immediately — granting the TLO power to revoke lottery sales licenses from businesses that continue to work with couriers.
"The agency will commence with appropriate administrative processes, whether it relates to investigations or respond to any violations," Rey said.
Several pieces of legislation from both chambers of the Texas Legislature this session have targeted courier services, which allow lottery tickets to be purchased online through a third-party source.
Gov. Greg Abbott called upon the Texas Rangers in late February to investigate two large lottery jackpots. In one of these cases, someone won an $83.5 million jackpot using an online lottery courier service, raising questions about the legality of these platforms. The other involved someone winning a $95 million jackpot after bulk-purchasing nearly 26 million number combinations.
"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 at the time. "Texans deserve a lottery that is fair and transparent for everyone."
Courier services have come under fire for allegedly permitting illegal activities, such as money laundering or selling tickets to underage customers. There is an ongoing lawsuit against the former TLO executive director Gary Grief for allegedly using them to launder money.
Lotto.com, a popular courier service, sued the TLO after it announced its move to ban courier services and alleged that the ban came abruptly, after the state previously helped the company operate in Texas.
The Coalition of Texas Lottery Couriers, representing companies such as Lotto.com, has strongly opposed the ban and is backing House Bill 3201. The proposed bill would establish regulations for the industry, requiring couriers to pay a licensing fee to the TLO and undergo annual audits to operate legally in the state.
The commission now awaits the appointment of a new executive director.
The Texas Newsroom's Lucio Vasquez contributed to this report.
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