News writer
The Texas Lottery seems to be caught in the crossfire of a high-stakes debate over technology, legality, and the future of gambling in the Lone Star State. Critics argue that independent companies are using apps to sidestep decades-old laws and that online lottery ticket sales are breaking state regulations.
Now, one lawmaker is leading the charge to rein in these digital workarounds before the new legislative session kicks off in January, but could this battle reshape the way Texans play the lottery?
New measure filed
A leading gambling opponent claims the Texas Lottery is allowing independent companies to skirt a state law that prohibits lottery tickets from being purchased over the telephone. They say this is being done by these brokers, who are taking orders online from the players who aren't obtaining the tickets from traditional stores.
Now, State Sen. Bob Hall, a Republican from Rockwall, has filed a measure, Senate Bill 79, in advance of the January start of the 2025 legislative session. This measure would make it clear that internet lottery sales are not allowed in Texas.
Hall told the Austin American-Statesman:
Back when the lottery was founded in the very early '90s, we didn't even know what an internet was. Now, there's an app to use the phone, and you can buy (tickets) online, and then they send in a person to buy a bushel basket full of tickets based on whatever was purchased online with them, and then pass them out to the people.
Lottery couriers making news in Texas
The use of these lottery courier companies started making headlines in Texas back in the spring of 2023. That is when the Texas Lottery Commission announced the winning ticket to a $95 million Lotto Texas jackpot was sold by a retailer called Lottery Now in Fort Worth.
It was later determined that there was no actual store called Lottery Now, but it was a storefront for a company that sells fishing tours in Montana.
Officials later determined that a single buyer placed the order for the winning ticket in person at the tour guide outlet. That purchase was part of an $11 million bulk purchase by a New Jersey company, which Lottery USA previously reported.
The buyer took the lump sum payout of $57.8 million and ended up netting $710,000 more in lower-tier prizes from tickets that matched some, but not all, of the winning numbers in that draw.
The Lotto Texas has numbers from 1 to 54, and there are 25.8 million possible combinations. By buying a large number of tickets for one single drawing, it increases the odds that one of them will hit the jackpot.
Laundering illegally obtained money
Because of that instance, Hall now states he is worried that any one entity that can afford a multimillion lottery purchase could be using the arm of the state to launder illegally obtained money.
However, at a hearing of the Senate State Affairs Committee last month, a consultant for several lottery courier companies said otherwise. They said they have guidelines in place to thwart any money-laundering attempts.
They also stated they have taken other steps to ensure that state laws requiring a lottery ticket to be purchased in Texas with either cash or debit card by someone 18 or older are upheld.
Bishop Woosley, a gaming consultant, told the Senate panel:
We use only the accepted and permissible payments which are allowed to be accepted within the jurisdiction. We have certified anti-money-laundering protocols in place. We have internal control audits.
No regulatory control
During that same hearing, Texas Lottery Executive Director Ryan Mindell said the state law governing lottery operations doesn't allow him to prohibit courier companies from operating in Texas.
According to Mindell, he only has control over the licensed lottery retailers in the state, the American-Statesman reported. However, Sen. Mayes Middleton said they are not deferring to legislative intent that prohibits ticket sales by phone.
Mindell said he has instructed his staff to develop proposals to either add regulations on these courier companies that operate in Texas or to ban them outright. However, Mindell said the state Legislature is the one to make the final decision on which road they take.
While Hall filed the measure to ban online ticket sales in the state, nothing can be done until after the Legislature convenes on January 14, 2025, and once committee memberships are set and bills are assigned.
Enjoy playing the Texas Lottery, and please remember to play responsibly.
Comments