Arizona Lottery Passes Rules Prohibiting Bulk Ticket Purchases

The Arizona Lottery recently updated its rules to include a ban on bulk purchases of lottery tickets, perhaps with an eye on looking to avoid a scenario similar to the one that started the downfall and eventual abolishment of the Texas Lottery Commission.

A “bulk ticket transaction,” per the Arizona Lottery’s official website, “occurs when any individual, group, or entity purchases, in aggregate, Fast Play tickets exceeding $50,000 within a twenty-four (24) hour period.” The definition further specifies that such a transaction takes place “regardless of whether the purchase: (a) occurs in a single transaction or multiple transactions; or (b) is made at a single retail location or multiple retail locations.”

Further, the Arizona Lottery deems that the purchase of Fast Play tickets by multiple individuals “acting in concert” shall be deemed a bulk ticket transaction. It defines acting in concert as including but not limited to: “individuals or entities coordinating their purchases, sharing funds for purchases, or acting on behalf of a common interest or strategy to exceed the stated purchase limitation.”

The Arizona Lottery offers national lottery contests Mega Millions and Powerball as well as an in-state lottery called The Pick.

An expanded scope of powers with the new rules

In tandem with the new rule, the Arizona Lottery cited state law (A.R.S. § 5-554(B)(3)) in holding the “sole and absolute authority to deny the award of any prize for violations of applicable laws, regulations, or game rules, including, but not limited to, restrictions pertaining to bulk ticket purchases.”

This has been a point of contention in Texas regarding the 2023 Lotto Texas drawing in which a consortium is alleged to have purchased an estimated $25 million worth of tickets that covered 99% of possible drawing combinations to claim a $95 million jackpot. There is also an $83.5 million Lotto Texas jackpot with a winning ticket sold in February being contested by a claimant who purchased the potential winning ticket via lotto courier.

That February jackpot has not been paid out as it is under Texas Rangers-led investigation ordered by Gov. Greg Abbott. The jackpot is currently frozen per a judge’s order as the claimant of that prize — identified as Kristen Moriarity — has a lawsuit against the TLC currently being heard in state district court.

The new Arizona Lottery rules also give it the right to investigate “any purchase patterns it deems suspicious or indicative of bulk ticket purchases.” It allows the agency to consider factors including reviewing video surveillance, purchase records, and witness statements to make such determinations.

In April, Arizona became the third state to regulate lotto couriers, joining New York and New Jersey.