The Texas Lottery Commission (TLC) is under fire as state lawmakers, law enforcement agencies, and industry leaders wrestle with allegations of misconduct, security concerns, and the very future of the agency. The controversy erupted last week when a jackpot-winning lottery ticket, worth $83 million, was purchased using Jackpocket, a third-party lottery courier app.
The use of digital courier services to facilitate ticket sales has sparked concerns over legality, transparency, and the potential for fraud, leading to a legislative crackdown and an investigation by the Texas Rangers.
Lt. Gov. Dan Patrick Launches Inquiry
The firestorm gained momentum when Lt. Gov. Dan Patrick personally visited the Winners Circle retail store in Austin, where the winning ticket was sold. In a video posted online, Patrick questioned store employees and even reached out to Jackpocket’s legal representatives.
“When someone wins a ticket here for $83 million, it makes everyone ask a lot of questions,” Patrick remarked, emphasizing the need for greater oversight and transparency within the state’s lottery system.
Legislators Move to Ban Lottery Couriers
In response to growing concerns, Sen. Bob Hall (R-Edgewood) introduced Senate Bill 28, which seeks to prohibit the purchase of lottery tickets through mobile apps and third-party courier services. The bill mirrors House Bill 389, filed by Rep. Matt Shaheen (R-Plano), indicating a coordinated effort to outlaw lottery couriers.
The legislative push comes at a crucial time, as the TLC is undergoing a sunset review—a process that could determine whether the agency continues to operate or faces dissolution. A prior report from the Texas Legislature Sunset Advisory Commission had already flagged longstanding issues within the agency, stating that the “TLC has had a turbulent existence.”
TLC Cracks Down, Faces Industry Backlash
Amid mounting pressure, the TLC announced a policy shift just before a pivotal legislative hearing, declaring that lottery courier services are “not allowed under Texas law” and proposing rule amendments to explicitly prohibit third-party ticket purchases. Under the new guidelines, retailers collaborating with couriers could have their lottery licenses revoked.
The decision sparked an immediate backlash from the Coalition of Texas Lottery Couriers, which condemned the move as “abrupt, disappointing, and unnecessary.”
Investigations and Allegations Escalate
As legislative hearings kicked off, lawmakers grilled TLC executives over their handling of lottery operations and regulatory oversight. Jeb Bell of the Legislative Budget Board underscored the need for stricter governance, warning that “TLC needs an active, involved commission.”
The controversy deepened when, just minutes before a critical hearing on Tuesday, Gov. Greg Abbott ordered the Texas Rangers to investigate two specific incidents involving bulk lottery ticket purchases made through courier services.
During a heated Senate Committee on State Affairs hearing, Sen. Bob Hall went so far as to allege that an “organized crime ring” had infiltrated the Texas government, accusing TLC officials of altering regulations to accommodate couriers and enable fraud, money laundering, and bulk purchasing schemes.
Sen. Brian Birdwell (R-Granbury) expressed frustration with the TLC’s perceived defiance of legislative authority, stating, “We passed laws, not suggestions.”
Sen. Paul Bettencourt (R-Houston) delivered one of the most scathing rebukes, telling TLC Executive Director Ryan Mindell, “If I was on your board, I’d vote to fire you. Because I have no confidence in what you’re telling us.”
Lottery Couriers Defend Their Role
Despite the harsh criticism, representatives from lotto.com, jackpot.com, and DraftKings defended their operations, insisting that reputable courier services operate legally and transparently.
Rob Porter, legal counsel for lotto.com, argued that regulation—not prohibition—was the key to maintaining integrity in the industry.
Paul Prezioso of jackpot.com echoed this sentiment, stating, “A well-regulated courier industry could weed out bad actors rather than eliminating a legitimate service.”
Nevertheless, DraftKings, which recently acquired Jackpocket, announced it would suspend its lottery courier operations in Texas, further highlighting the industry’s uncertainty.
What’s Next for the Texas Lottery?
As legislative debates continue, the fate of the TLC remains uncertain. Senate Bill 28, which seeks to ban lottery couriers, has already passed out of committee with unanimous support and is now heading to the full Senate for consideration.
Meanwhile, multiple investigations remain active, including the Texas Rangers’ probe into potential fraud and misconduct within the TLC and third-party courier services.