In a major regulatory move on Monday, the Texas Lottery Commission announced plans to ban lottery ticket courier services, a decision prompted by a recent $83.5 million jackpot win that has raised concerns among state officials.
Executive Director Ryan Mindell stated that under Texas law, these courier services companies, which accept lottery orders via apps or websites and then purchase tickets from licensed retailers, are not permitted to operate within the state.
In a policy statement, Mindell explained: “Unregulated courier operations provide opportunities for other illegal and fraudulent activities to flourish, including money laundering, the sale of fictitious tickets, and false representations of a courier’s association with the TLC. If couriers are allowed to continue to operate, these critical safeguards will continue to be circumvented and the public will be harmed.”
The new directive marks a sharp reversal from Mindell’s earlier testimony at the Senate Appropriations Committee, where he maintained that the commission lacked the authority to regulate online sales or shut down courier operations. Now, the agency intends to propose rule amendments at an open meeting scheduled for March 4, with a 30-day public comment period to follow.
The policy decision comes in the wake of an investigation launched by Texas Lt. Gov. Dan Patrick following the controversial sale of the winning ticket at a North Austin store. Patrick has expressed strong discontent with the commission’s actions.
He posted on social media: “Suddenly, this morning, only 6 days after I investigated a combined retail and courier operation in person that sold an $83 million winning lottery ticket last week, the Commission quickly announced they would end all courier services. I now have even less confidence in the integrity of the Lottery Commission with this abrupt turnaround.”
“The Senate passed a bill to end courier services in 2023 by a vote of 29-2, and someone convinced the House to kill it. If the Lottery Commission thinks this ends our investigation, they are wrong. I promise the people of Texas that we will restore the integrity of the Texas lottery so people can trust its fairness. Otherwise, the Senate will end the Lottery this session.”
Representatives from the industry have also voiced their disapproval. A spokesperson for the Coalition of Texas Lottery Couriers stated: “Today’s decision by the TLC to ban lottery courier services is abrupt, disappointing and unnecessary. 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.”
The controversy over courier services has been compounded by recent state hearings, during which testimony highlighted past lapses in oversight and risky practices within the Texas Lottery. Critics pointed to the agency’s failure to regulate bulk lottery ticket purchases and noted that previous operations by former executives had operated in legal gray areas. Concerns persist that these issues may jeopardize the lottery’s significant contribution to education funding.
In a related development, Governor Greg Abbott directed the Texas Rangers to investigate both the recent $83.5 million win and a 2023 incident where a bulk purchase of lottery tickets resulted in a $95 million jackpot win.
“Texans must be able to trust in our state’s lottery system and know that the lottery is conducted with integrity and lawfully. 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,” Abbott said.
Original article: https://www.yogonet.com/international/news/2025/02/25/96321-texas-lottery-commission-acts-to-end-courier-sales-in-the-backdrop-of-83-million-jackpot-controversy
