Multiple bills in Indiana that would make operating a unauthorized lottery courier service in the state a criminal offense could be close to passing.
Senate Bill 94 has passed both legislative chambers and an amended version has been returned to the Senate for concurrence.
The bill, which passed the Senate by a 44-5 vote and the House 82-10, would amend the Indiana Code to stipulate that anyone who operators a lottery courier service without the authorization of the Indiana Lottery Commission would be committing a Class A misdemeanor.
SB 94 also notes that, “unless specifically granted authority by a statute passed by the general assembly,” neither the lottery nor the Indiana Gaming Commission has the right to operate or authorize lottery courier services.
A bill that originated in the opposite chamber, House Bill 1053, has also passed both chambers and been returned with amendments for concurrence. It includes identical language on lottery couriers.
Both bills have Rep. Ethan Manning and Rep. Peggy Mayfield attached as House sponsors and Sen. Ron Alting and Sen. Lonnie Randolph as sponsoring senators.
Things could change down the line
While these bills do not empower the lottery to authorize a courier service or create a legal right to operate a courier, that could be a future option if lawmakers agree and pass a bill to do so.
Manning led a bill earlier this session that aimed to legalize online casino and an online lottery in Indiana, but his HB1432 stalled in committee in February amid conerns over cannibalization of retail casinos and small lottery retailers.
That proposal would have seen the Indiana Lottery Commission oversee online lottery expansion including online sales of popular draw games and einstant games. It also would have implemented a provision to regulate lottery courier in the states by allowing them to do business upon receipt of a license.
That issue could well be revisited in future legislative sessions.
Lottery couriers on the mind of states
Lottery courier services, which purchase lottery tickets on behalf of online consumers and charge a commission, have spread across the U.S. The most high-profile may be Jackpocket, thanks to its $750-million acquisition by DraftKings last year, but there are others operational in multiple states, such as Jackpot.com, Lotto.com and TheLotter.
Several high-profile deals have been struck, such as Jackpot.com becoming the official lottery partner of 7-Eleven and the official lottery results provider of the Associated Press, adding to its partnerships with MLB teams such as the Cleveland Guardians and the New York Yankees.
Jackpocket notably pulled out of New Mexico earlier this year after that state’s Attorney General suggested the company’s operations may have violated the state’s gaming compact with tribes despite Jackpocket having a memorandum of understanding with the New Mexico Lottery.
Just next door from New Mexico, in Texas, a bill introduced in the House aims to establish a regulatory framework for lottery couriers in Texas. The bill’s sponsor noted that “millions of Texans use digital apps to order Texas Lottery tickets, a technological convenience that has far outpaced the original legislation.”
That bill, which has support from Jackpocket, Jackpot.com and Lotto.com, came amid the Texas Lottery Commission declaring that lottery couriers are unlawful.
