Texas Governor Greg Abbott has directed state law enforcement to investigate two major lottery jackpots, raising concerns about the role of online ticketing firms in the state’s lottery system.
The Texas Rangers will examine the circumstances surrounding an $83.5 million jackpot won this month and a $95 million prize from 2023, both of which involved virtual ticket sales. Officials fear that these cases could undermine public confidence in the lottery.
“Texans must trust that the state’s lottery system is fair and conducted lawfully,” Abbott stated in a news release on Monday. Lawmakers have criticized the Texas Lottery Commission for failing to regulate third-party lottery couriers, which facilitate online ticket purchases.
Concerns Over Lottery Couriers
Lottery courier services allow customers to buy tickets virtually, with couriers purchasing physical tickets from retailers they often own. Critics argue this system makes it difficult to verify buyers’ identities and raises concerns about potential money laundering.
These services gained attention in April 2023 when a single entity purchased 25 million lottery tickets within 72 hours using a courier service. The investor doubled their money due to the high jackpot, ultimately winning $57.8 million before taxes, according to CNN affiliate WFAA.
Courier services currently operate in 19 states, but only New York, New Jersey, and Arkansas have regulations governing them, according to a 2024 Texas House report. In Texas, couriers are not required to obtain licenses or seek approval from the Texas Lottery Commission.
Texas Moves to Ban Lottery Couriers
In response to growing controversy, the Texas Lottery Commission announced plans to ban courier services. The agency will revoke the licenses of retailers that collaborate with couriers, aiming to ensure compliance with state laws and maintain public trust.
“Lottery courier services in Texas have been a significant concern,” said Texas Lottery Commission Executive Director Ryan Mindell. “After reviewing the State Lottery Act and recent investigations, we are taking steps to prohibit their operations.”
Clark Smith, a Texas Lottery Commissioner, resigned on Friday amid the controversy.
The Coalition of Texas Lottery Couriers criticized the ban, calling it “abrupt, disappointing, and unnecessary.” The group argued that couriers have legally operated in Texas since 2019 and have consistently sought regulation.
Political Backlash
Texas Lt. Gov. Dan Patrick strongly criticized the lottery commission’s handling of the issue. Calling its statement “garbage,” Patrick accused the agency of failing to regulate couriers from the start and allowing them to operate unchecked.
Patrick has urged the Texas Rangers to expand their investigation beyond the two jackpots to examine all aspects of the commission’s oversight of courier services.
Last week, Patrick visited the Austin retail store that sold the recent $83.5 million winning ticket, questioning an employee about its operations in a video posted on social media.
As scrutiny intensifies, the future of online lottery ticket sales in Texas remains uncertain.
