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’s lottery system faces increasing scrutiny over the use of third-party courier services.
Authored by Sen. Bob Hall (R-Edgewood), Senate Bill 28 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’s 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 “an organized criminal operation that is stealing millions of dollars from the public.”
“SB 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,” Hall said.
Senators also unanimously approved a motion from Hall to fast-track the bill’s 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’ve raised questions about the system's integrity and its use of lottery couriers. Lawmakers like Sen. Hall argue these companies, which currently operate without regulation in Texas, have opened the door to illegal gambling practices.
The state’s lottery commission on Monday moved to prohibit courier services in the state, just days after Texas Lottery Commissioner Clark Smith stepped down from his position. Companies like Jackpocket, one of the country’s 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.
“Our 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,” the coalition wrote in a statement Thursday, referencing the jackpots that are being investigated.
The coalition says it’s backing House Bill 3201, which was filed by Rep. John Bucy (D-Austin) on Friday. Rather than banning courier services in Texas, Bucy’s 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.
“My bill would add the oversight that’s needed,” Bucy said. “It would implement across-the-board standards, such as age verification, such as no credit cards – only debit card transactions.
“I think in a free society, that’s how this should work,” he added.
This post was updated at 4 p.m. on Thursday with comments from Rep. Bucy.
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