Texas Lottery Commission Bans Lottery Courier Companies From The State
The move was not unexpected after a wild few years in the Texas lottery world, and the drama figures to continue
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Lottery courier companies have now joined the Alamosaurus and the Houston Oilers as things that used to exist in Texas but do no longer, thanks to the Texas Lottery Commission voting unanimously Tuesday to ban the services.
The ban is immediate, and according to the Texas Tribune, any lottery retailer that works with or assists couriers can have its lottery license revoked.
This move was not unexpected, as then-Texas Lottery Commission Executive Director Ryan Mindell (he resigned last week) moved to wipe couriers off the face of Texas in February.
“The Texas Lottery was established to provide a secure and transparent system for players to purchase tickets in person from licensed brick-and-mortar retailers for the purpose of generating revenue for public education and veterans’ services in a responsible manner,” said Mindell in a press release at the time. “Lottery courier services operating in Texas have been a significant concern for many of our stakeholders. Previously, the agency interpreted its authority as not extending to the regulation or prohibition of these services. 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. In recent days, our agency conducted a review of our authority under the State Lottery Act. As a result of this review and information from recent retailer investigations, the Commission will revoke the license of a retailer that works with or assists a courier service and we are moving to prohibit courier services in Texas to ensure all ticket sales comply with state law and agency regulation as well as to maintain public trust.”
Sergio Rey, the commission’s now-acting deputy executive director, said Tuesday the agency will begin enforcing the new rules immediately.
Predictably, the Coalition of Texas Lottery Couriers (CTLC) was not pleased with the decision.
“The Texas Lottery Commission (TLC) decision to approve a ban on lottery couriers is the most recent in a series of actions that have undermined the accountability and credibility of an agency whose operations are under investigation,” read a statement from the CTLC. “Lottery couriers legally operated for years with the cooperation and assistance of the TLC. Although the agency repeatedly testified that it had no regulatory authority over couriers, in response to political pressure, the TLC chose to abruptly change course and eliminate businesses, jobs, state revenue, and a service millions of Texans use to order lottery tickets.”
What a timeline
It’s been a rough few years for all things lottery related in Texas, and the heat is still turned to high.
Mindell’s departure comes after just one year in the position, following former Executive Director Gary Grief’s resignation in 2024. On the day of Mindell’s announcement, lottery publication Lottery USA released an interview with an anonymous source claiming Grief and other commission officials assisted the group Rook TX in their effort to purchase every possible combination for a $95 million Lotto Texas drawing in April 2023.
The controversy intensified this February when a lottery player using the Jackpocket courier service won an $83.5 million Texas Lotto jackpot. Lt. Gov. Dan Patrick launched an investigation on Feb. 18 into the retail outlet where the winning ticket was purchased. Texas Lottery Commissioner Clark Smith resigned three days later.
On Feb. 24, under Mindell’s direction, the Commission moved to ban lottery courier services, while Gov. Greg Abbott simultaneously ordered the Texas Rangers to investigate both the 2023 and 2025 jackpot wins.
The CTLC responded on March 10 by supporting legislation that would ban the sale of tickets to entities attempting to purchase all possible number combinations.
By March 26, the February jackpot winner appeared on NBC News as her winnings remained held pending state investigations. The commission conducted a public hearing on April 3 regarding the then-proposed courier ban.
And in a separate but related development, the Texas House passed a budget plan on April 11 that would defund the Texas Lottery Commission entirely.
