The Texas Senate on Thursday unanimously passed a bill aimed at banning the sale of lottery tickets through online platforms. The move comes as the state鈥檚 lottery system faces increasing scrutiny over the use of third-party courier services.
Authored by Sen. Bob Hall (R-Edgewood), amends existing laws to explicitly prohibit the purchase or sale of Texas lottery tickets via the internet or mobile devices. The bill, which had bipartisan support from more than two dozen co-authors, would also classify online lotto ticket sales as a misdemeanor offense.
Hall argued that the Texas Lottery Commission鈥檚 toleration of online lottery couriers, which are companies that allow customers to buy tickets through an app or website without having to visit a physical retailer, have enabled 鈥渁n organized criminal operation that is stealing millions of dollars from the public.鈥�
鈥淪B 28 will not restore integrity to the Texas Lottery, I don't even know if that's possible, but it will reiterate the responsibility we have given the commission to ensure lottery couriers and their licensed retail outlets are no longer able to operate in the state,鈥� Hall said.
Senators also unanimously approved a motion from Hall to fast-track the bill鈥檚 passage by forgoing a third reading, which is the last step before a bill can move onto the Texas House for consideration. About a minute later, the bill was unanimously passed.
The state attorney general and Texas Rangers are investigating two major jackpot wins, totaling nearly $180 million, that鈥檝e raised questions about the system's integrity and its use of lottery couriers. Lawmakers like Sen. Hall argue these companies, which currently operate in Texas, have opened the door to illegal gambling practices.
The state鈥檚 lottery commission on Monday moved to in the state, just days after Texas Lottery Commissioner Clark Smith from his position. Companies like Jackpocket, one of the country鈥檚 major online lottery courier services, have already suspended operations in Texas.
The Coalition of Texas Lottery Couriers, which represents companies like Jackpocket, has pushed back against the proposed legislation, arguing that their services have been legal since they began operating in the state in 2019.
鈥淥ur companies have never been involved in any efforts to guarantee a jackpot win, and coalition members did not issue the equipment needed for outside entities to pursue their bulk purchase scheme,鈥� the coalition wrote in a statement Thursday, referencing the jackpots that are being investigated.
The coalition says it鈥檚 backing , which was filed by Rep. John Bucy (D-Austin) on Friday. Rather than banning courier services in Texas, Bucy鈥檚 bill aims to regulate the industry; requiring couriers to pay a licensing fee to the lottery commission and pass yearly audits in order to operate within the state.
鈥淢y bill would add the oversight that鈥檚 needed,鈥� Bucy said. 鈥淚t would implement across-the-board standards, such as age verification, such as no credit cards 鈥� only debit card transactions.
鈥淚 think in a free society, that鈥檚 how this should work,鈥� he added.
This post was updated at 4 p.m. on Thursday with comments from Rep. Bucy.
