Texas Lottery Bans Lottery Courier Services: Fraud suspected in Texas Lottery

The Texas Lottery has taken a bold step toward reshaping how Texans play their favorite games. On March 4, 2025, the Texas Lottery Commission will formally introduce rule amendments aimed at banning lottery courier services across the state.

This decision, announced today, February 24, 2025, comes amid growing scrutiny from lawmakers, allegations of fraud, and concerns over the integrity of the Texas Lottery system. For millions of players and stakeholders, this could mark the end of a controversial era in Lone Star State gaming.

What Are Lottery Courier Services?

Lottery courier services, like Jackpocket (a DraftKings subsidiary) and Lottery.com, operate as third-party platforms that allow users to purchase Texas Lottery tickets online or via mobile apps. These services dispatch representatives to buy physical tickets from licensed retailers on behalf of customers, offering convenience in a state where official online lottery sales are prohibited.

While legal in Texas since 2016, courier services have operated in a gray area, sparking debates over fairness, regulation, and transparency.

The recent $83.5 million Lotto Texas jackpot, won on February 17, 2025, through Jackpocket at a North Austin store called Winners Corner, brought this issue into sharp focus. The fact that both the courier service and the retail location are tied to DraftKings raised eyebrows and fueled calls for reform.

Why the Texas Lottery Wants to Ban Courier Services

The push to ban lottery courier services stems from multiple concerns:

  1. Lack of Oversight: The Texas Lottery Commission has long maintained it lacks the authority to regulate courier services, despite allowing them to operate. Critics, including Lt. Gov. Dan Patrick, argue this hands-off approach has undermined the lottery’s integrity.
  2. Fraud Allegations: A class-action lawsuit filed in February 2025 accuses a former lottery commissioner of enabling bulk ticket purchasing schemes through couriers, potentially manipulating jackpots. These claims echo earlier controversies, such as a 2023 incident involving overseas investors allegedly exploiting courier storefronts.
  3. Public Trust: High-profile wins tied to courier services—like the $83.5 million prize—have sparked skepticism. Lt. Gov. Patrick has publicly questioned whether the public can trust a system where a single entity controls both the courier and the ticket-selling location.
  4. Legislative Pressure: With the Texas Lottery Commission facing a Sunset Review in 2025—where its existence could be terminated unless renewed by lawmakers—banning couriers has become a “hard line” issue. Patrick has warned that failure to act could spell the end of the Texas Lottery entirely.

Ryan Mindell, Executive Director of the Texas Lottery Commission, emphasized the legal basis for the ban, stating, “Lottery ticket courier services are not allowed under Texas law, and we will move forward with proposed rule amendments prohibiting [them] within the state.” This shift reverses years of ambiguity and signals a return to traditional, in-person ticket sales.

The Controversy: Convenience vs. Integrity

Courier services have been a double-edged sword. For players, they offered a modern way to participate in games like Lotto Texas and Powerball without visiting a store. Approximately 9% of the lottery’s draw game sales come from couriers, according to Legislative Budget Board estimates, highlighting their popularity.

However, critics argue this convenience comes at a cost. State law mandates that lottery tickets be sold in-person at brick-and-mortar retailers offering other goods—not through apps or “boiler-room-like” operations with rows of ticket machines. Patrick’s visit to Winners Corner revealed dozens of terminals hidden from public view, amplifying concerns about transparency.

DraftKings, defending its Jackpocket service, insists it complies with Texas law and doesn’t engage in bulk purchasing—a practice it supports banning.

The company claims the $83.5 million winner was a longtime Texas resident who bought just 10 tickets, not a corporate scheme. Yet, the optics of a courier-linked retailer hitting the jackpot have only intensified the debate.

Lawmakers Take a Stand

The Texas Legislature has been circling this issue for years. In the last session, a Senate-approved bill to ban couriers died in the House.

Now, with fresh momentum, lawmakers like Rep. Matt Shaheen (R-Plano) and Sen. Bob Hall (R-Rockwall) have filed bills to outlaw online and app-based ticket sales entirely. Meanwhile, Patrick has tied the lottery’s survival to eliminating couriers, stating, “Couriers have to go.”

The timing is critical. Unless extended by September 1, 2025, the Texas Lottery Commission will cease to exist under the Texas Sunset Act. This looming deadline has turned a routine renewal into a high-stakes showdown.

What This Means for Texas Lottery Players

If the ban takes effect, players will need to return to traditional methods—visiting convenience stores, gas stations, or other licensed retailers—to buy tickets. While this may inconvenience some, supporters argue it restores the lottery’s original intent: a transparent, cash-based system accessible to all.

For now, courier services remain operational until the March 4 meeting formalizes the rule changes. Players using apps like Jackpocket should stay informed, as the transition could disrupt their usual play.

The Bigger Picture

The Texas Lottery’s move to ban courier services reflects broader questions about gambling in the digital age. Is convenience worth risking public confidence? Can a system designed in 1991 adapt to 2025’s technology without losing its soul? And who really benefits when jackpots soar—everyday players or shadowy purchasing groups?

As this story unfolds, tex.org will keep you updated on the Texas Lottery’s future, the legislative session, and how these changes impact Texans.