The Texas Lottery Commission (TLC) has launched multiple investigations into retailers connected to lottery courier services, according to Executive Director Ryan Mindell. The announcement came during his testimony before the Texas House Committee on Licensing and Administrative Procedures on Tuesday.
A lottery courier service allows customers to purchase tickets online or via mobile apps, rather than visiting a physical retailer. However, the TLC has taken enforcement action against all known retailers working with couriers, citing violations of existing rules or state laws.
Retailers Facing Compliance Actions
Mindell stated that some of the investigated retailers have voluntarily surrendered their lottery licenses or severed ties with courier services. A spokesperson for the TLC confirmed that eight retailers have been issued “show compliance” letters, a step in the enforcement process requiring businesses to demonstrate adherence to the law.
“As seven of the enforcement cases remain open and pending, we are unable to comment further or provide any additional details on those at this time,” the spokesperson stated via email.
Proposed Rule Change to Ban Retailer-Courier Partnerships
The commission is also moving to formally prohibit any retailer from working with a lottery courier service. A proposed rule change, introduced on March 4, would explicitly prevent retailers from collaborating with couriers. The rule must undergo a 30-day public comment period before a final decision is made at an open meeting in April.
If the rule is approved, the TLC will have the authority to revoke the licenses of retailers that continue working exclusively with courier services. The proposed rule states, “The TLC intends to exercise this authority through administrative enforcement proceedings to revoke the lottery ticket sales agent license of a retailer that works in concert with a courier, whether under a common ownership arrangement or otherwise.”
Impact on the Lottery Industry in Texas
The move comes amid growing concerns about the legality and oversight of lottery courier services, which have gained popularity by offering customers a more convenient way to purchase tickets. While some states have regulated and authorized such services, Texas appears to be taking a stricter stance.
If the rule change goes into effect, it could significantly impact retailers that have partnered with couriers, as well as consumers who rely on these services to play the lottery. The upcoming public comment period will provide an opportunity for stakeholders to voice their opinions before the commission votes on the final rule in April.
