Digital lottery courier services are a service growing in popularity and reach in the U.S., but a tribe in Texas believes they are “a slippery slope” constituting unlawful gambling expansion, and wants them banned.
In a letter to the Senate State Affairs committee, the Kickapoo Traditional Tribe of Texas urged the government to take enforcement action to prevent lottery couriers from operating “effectively a form of internet gaming” in the Lone Star State.
In the letter authored by Kickapoo General Counsel Jason C. Nelson, the tribe claims that lottery couriers are in violation of the State Lottery Act and the Texas Lottery Commission’s regulations by allowing what amounts to a form of internet gambling and providing lottery tickets by phone.
“These lottery courier services are operating contrary to the law and represent a significant expansion of gambling in the state,” read the letter authored by Nelson. “As such, they must be prohibited from operating.”
Multiple lottery couriers are active in a range of U.S. states, including Jackpot.com, Jackpocket and Lotto.com. All three of those companies publicly list Texas as an available state of operation on their respective websites.
While each platform has its own nuances, general speaking, these apps purchase lottery tickets to order on behalf of online consumers and charge a commission on player’s deposits or winnings.
‘An express attempt’ to circumvent law, alleges Tribe
However, the Kickapoo Tribe’s letter alleges that lottery couriers, “do not simply act as ‘delivery services’ whose employees travel to brick-and-mortar retailers to purchase lottery tickets on behalf of their customers.”
“Rather, they provide comprehensive online gaming experiences to their users that have the ability to mimic otherwise unlawful internet gaming. This is an express attempt to work around the State’s prohibition on internet gaming, and achieving this end goal — i.e., unregulated internet gaming — is the end goal for many of these lottery courier services.”
Nelson added that couriers are “directly and adversely” affecting the tribe’s finances by enabling “otherwise unlawful internet gaming.”
The letter also points to the suggestion that, “at least one courier service was purchased by a sports betting company because of the online gaming capabilities.” U.S. sports betting and gaming giant DraftKings‘ bought Jackpocket for $750 million this year, with CEO Jason Robins highlighting the cross-sell opportunities the platform could bring to the company.
The letter ultimately calls for the Texas Lottery Commission to enforce Texas law against “illicit” online or mobile lottery ticket sales.
“At a minimum, any law purporting to allow lottery courier services in Texas must ensure that such services are true couriers by mandating they deliver the physical lottery tickets to players immediately upon purchase and prior to the ticket’s drawing.”
SBC Americas reached out to the Texas Senate and the Texas Lottery Commission for comment.
