The Texas Lottery Commission (TLC) has changed its stance regarding lottery couriers.
On Monday, the commission declared that lottery ticket couriers are no longer legal under state law marking a dramatic shift in the Lone Star State. The change in tone for Texas comes after the filing of a class action lawsuit and scrutiny from state lawmakers.
The scrutiny has also led to the resignation of TLC commissioner Clark Smith.
“Lottery courier services operating in Texas have been a significant concern for many of our stakeholders,” said TLC Executive Director Ryan Mindell. “Since I became executive director less than a year ago, I have been keenly focused on making changes to improve the public’s perception of Texas Lottery games and how they are played and operated.”
One of the changes spearheaded by Mindell and his new stance on couriers is providing the TLC with the ability to revoke lottery licenses from retailers that allow courier sales.
Couriers have also drawn concerns from stakeholders, including Lt. Gov. Dan Patrick.
“Today’s action is an obvious admission that the Texas Lottery Commission had the oversight authority all along and allowed these businesses to creep into Texas and undermine the integrity of the Texas Lottery,” said Patrick in a post shared on X.
Last week, Patrick called for an investigation into the Texas Lottery, couriers and retail stores. He is seeking an investigation to ensure that “no one has an advantage” in the market. Patrick also wants to ensure that lottery ticket sales are fair and trustworthy.
Texas lottery scheme leads to scrutiny
Last week, the Texas Senate Finance Committee proposed a ban on lottery courier services following allegations of fraud pertaining to a $95 million jackpot awarded in 2023.
That year, a group of investors spent more than $25 million to purchase a large number of ticket combinations for the jackpot, according to a probe by the Houston Chronicle.
The alleged misconduct by the group of investors, Rook TX, drew the attention of lawmakers resulting in the Finance Committee accusing the TLC of ignoring money laundering. The TLC has also been accused of allowing underage lottery ticket sales.
The TLC’s handling of the alleged misconduct has led to a class action lawsuit.
Earlier this month, LottoReport.com founder Dawn Nettles filed the class action in Harris County District Court alleging the TLC of hosting a “long-running fraud scheme.”
In addition to Rook TX, IGT Solutions and Lottery.com have also been named in the suit.
IGT has been included for its delivery of lottery terminals across Texas while Lottery.com has been named due to the alleged misconduct of founder Ryan Dickerson.
According to court documents, Dickerson purchased 142 winning lottery tickets in three years, including a $50,000 Powerball in 2020. In 2021, he won another $50,000 Powerball.
Dickerson was relieved of his duties by Lottery.com in 2022 after being terminated for cause. The company would later replace its entire executive team and board of directors.
Lottery.com has also been accused of violating state law by selling tickets across state lines. The company also allegedly illegally sold tickets across international borders.
According to the Texas Legislative Budget Board, state lottery couriers generate over $173 million in annual sales. The couriers include Jackpocket, Lotto.com and Jackpot.com. SBC Americas reached out to the group for comment but has received no responses.
