Oregon Lottery Proposes Rulemaking To Regulate Couriers

The Oregon Lottery has filed a notice of proposed rulemaking in which it seeks to adopt regulations for retailers who work with a lotto courier, and would also ban out-of-state sales.

A revised proposal to the original one filed July 11 was filed with the Oregon Secretary of State on Monday and will be the subject of a hearing scheduled for Aug. 20. Public commentary is open until the end of the business day Aug. 29.

Per the filing, the Oregon Lottery says the current lack of regulation in these areas “may inadvertently contribute to the violations of international law.” The agency adds, “implementing these rules is a critical step forward toward safeguarding the integrity of Oregon’s lottery system, ensuring compliance with legal standards, and maintaining the trust of our partners and the public.”

Agency research

The Oregon Lottery feels the proposed rulemaking would not have a large impact based on its research. Oregon has 3,200 lottery retailers, but the state agency said it is “currently aware of around seven retailers who work with courier services and six retailers who work with a courier service who facilitates out-of-state and international ticket sales.”

It acknowledges a “handful of courier services operating in Oregon but there may be more than the Lottery is aware of.” The Oregon Lottery also provided no specific figures on the amount of ticket sales generated by couriers but estimated a “high-volume international courier service that the Lottery is aware of” sold $4.4 million worth of tickets to international players from January through April, while a “lower-volume international courier” sold $1.2 million in the same time period.

The Oregon Lottery cited events taking place in other states, including Colorado, New York, New Jersey, Arizona, Indiana, and of course, Texas, as an impetus to craft regulations for couriers. It also had direct communications with both U.S. and international lotteries that “further intensified the pressure and made it clear that Oregon needs clear regulatory guidance for Lottery retailers who work with couriers.”

Counting the costs

The agency estimated the average monthly commission per location of all known retailers who facilitated international ticket sales in 2024 was approximately $32,300 monthly. The Oregon Lottery projected that if international sales were discontinued by the end of “Business Year 2025,” the loss in gross revenue to the lottery for Business Year 2026 would range from $32.6 million-$54.9 million.

That would result in state transfers to the Economic Development Fund (EDF) that could range from $11.1 million to $18.7 million per year. Those lost transfers, though, represent less than 1% of the $1.9 billion transfers to the EDF for the 2025-27 biennium.

In addition to the end of international sales, for couriers who wish to remain conducting business in Oregon, the rulemaking proposal notes retailers and couriers would have to “undertake reporting, recordkeeping, and administrative activities to comply with the rules, which may impose costs on the retailer and courier.”

That also includes ensuring accurate records of ticket purchases and storing tickets securely for couriers, though the Oregon Lottery notes “that reputable courier services may already meet the requirements because they are required in other lottery jurisdictions in which the couriers operate.”