A pair of Texas lawmakers are taking legislative action to prevent collusion regarding the sale of lottery tickets across the state.
Sens. Bryan Hughes and Paul Bettencourt have introduced Senate Bill 1346 as a measure that prohibits lottery ticket sales to “persons attempting to purchase all possible winning tickets in a lottery drawing.” The two lawmakers co-authored the bill amid allegations of fraud pertaining to a multimillion-dollar jackpot awarded in 2023.
SB 1346 mandates that a lottery ticket sales agent may not “knowingly sell or allow the sale” of tickets for a lottery game to one or more persons who are attempting to buy all possible winning tickets. The measure, pending in the Senate State Affairs Committee, also calls for a hearing if illicit sales are expected. The hearing will determine whether the Texas Lottery Commission (TLC) shall revoke the licenses of sales agents.
Sales agents who violate SB 1346 and have their licenses revoked are prohibited from applying for a valid sales agent license before the first anniversary of the revocation date.
If SB 1346 is enacted, the bill’s requirements will take effect on September 1, 2025.
Lottery controversy in Texas
Hughes and Bettencourt filed SB 1346 following allegations of fraud related to a $83.5 million winning lottery ticket purchased from a brick-and-mortar store in 2023.
According to an investigation by the Houston Chronicle, a group of investors allegedly spent more than $25 million purchasing a large number of lottery ticket combinations for the Lotto Texas jackpot. The group of investors, Rook TX, drew the attention of lawmakers resulting in the Texas Senate Finance Committee accusing the TLC of ignoring money laundering. The committee has also accused the TLC of underage sales.
As a result of the TLC’s alleged misconduct, a class action suit was filed in a district court.
The lawsuit, filed by LottoReport.com founder Dawn Nettles, names Rook TX and Lottery.com. Lottery.com was included in the suit due to the alleged misconduct of founder Ryan Dickerson, who was said to have purchased 142 winning lottery tickets in three years.
According to court documents, Dickerson purchased a winning $50,000 Powerball in 2020. A year later, the former Lottery.com executive won another Powerball.
The alleged misconduct related to lottery sales caused the TLC to declare lottery ticket couriers no longer legal under state law. The decision came after Texas Lt. Gov. Dan Patrick called for a probe into the relationship between the lottery, couriers, and stores.
Texas considers another lottery measure
The controversy surrounding the lottery led Rep. John Bucy III to introduce House Bill 3201, a measure that creates a regulatory framework for lottery ticket couriers in Texas.
HB 3201 proposes the TLC regulate couriers while providing oversight for the registration and approval process of licensing. The bill also calls for couriers to only accept services from patrons over 18 years of age with geolocation requirements to ensure legal sales.
It bans the use of credit cards for ticket sales along with testing for potential licensees.
