In a unanimous vote, the Texas Lottery Commission (TLC) approved a controversial rule banning lottery courier services from selling tickets online, igniting sharp backlash from the courier industry and intensifying scrutiny of the embattled state agency.
The ban, which takes immediate effect, marks a significant policy reversal for the TLC. For years, the Commission had allowed couriers to operate in Texas without formally regulating them, despite their role in enabling millions of Texans to purchase lottery tickets through mobile apps and websites.
The decision comes at a time when the agency is under a cloud of growing political pressure, internal upheaval, and ongoing investigations by top state officials. Critics argue the move to ban couriers is less about consumer protection and more about damage control.
“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,” the Coalition of Texas Lottery Couriers said in a statement shortly after the vote.
Lottery courier services, such as Lotto.com, operate by allowing customers to order official lottery tickets remotely. The service then buys the physical tickets from licensed retailers and manages payouts when users win. These services have grown popular in recent years, especially among younger, tech-savvy players and people in rural areas with limited access to lottery retailers.
The acting executive director of the TLC announced that the rule change was effective immediately, even as confusion continues over the agency’s authority in this matter. Until recently, the TLC had testified publicly that it lacked regulatory power over such third-party services.
That apparent contradiction is now central to a legal battle. Lotto.com has filed a lawsuit accusing the Commission of violating due process and acting in bad faith. “The Commission changed rules on the fly and without due process,” the company said in its suit. “It has made up other new ‘rules’ illegally and unconstitutionally targeting LTC’s business.”
Further complicating the issue is the recent resignation of Ryan Mindell, the Commission’s executive director, less than a week before today's vote. The Commission is still in the process of selecting a permanent replacement.
Meanwhile, the Texas Legislature is also moving to tighten restrictions on online lottery participation. The Texas Senate recently passed legislation that would prohibit purchasing tickets or playing the lottery over the internet. The bill is now under consideration by the House Committee on Licensing and Administrative Procedures.
The TLC’s future is now further in doubt. The agency is currently undergoing a sunset review, a legislative process that evaluates whether a state agency should continue to exist. Lawmakers could opt to let the Commission be dissolved entirely, raising questions about the long-term oversight of Texas’s multi-billion-dollar lottery system.
Investigations into the TLC ramped up after it emerged that a recent multi-million-dollar lottery winner used a courier service to buy their ticket. The incident sparked alarm among state leaders, including Gov. Greg Abbott, Lt. Gov. Dan Patrick, and Attorney General Ken Paxton, who have launched inquiries into the Commission’s oversight and transparency.
While the TLC argues the courier ban is a necessary step to maintain the integrity of the state lottery, opponents see it as a hasty, politically motivated action that will cost jobs, limit access, and reduce state revenue.
“This isn’t about protecting consumers,” one industry insider said. “It’s about the Commission protecting itself.”
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