Texas Lottery Commission hears public comment on proposed lottery courier ban

AUSTIN (Nexstar) — Proposed rule changes from the Texas Lottery Commission (TLC) would allow the commission to revoke the license from any retailer that sells tickets to or works with a lottery courier service, which allow people to buy lottery tickets online or through an app.

On Thursday, the commission held a public comment hearing to allow people to share their thoughts on the proposed changes. Two people signed up to speak. Paul Hardin, the president of the Texas Food and Fuel Association spoke in favor of the bill.

His association represents roughly 16,500 convenience stores and gas stations across the state that are responsible for about two-thirds of lottery ticket sales. In his testimony, Hardin said lottery couriers pose a risk to the integrity of the commission.

“If consumers lose confidence then they might move away from lottery purchases all together,” Hardin said in his testimony.

In its proposed draft of the rule change, the commission said “there will be no significant fiscal impact for state or local governments as a result of the proposed amendments” in the first five years of its effect. The commission said it is aware this will negatively impact eight licensed retailers.

Rob Porter, the chief legal officer for Lotto.com, a courier service, spoke against the proposed change at the hearing. He spoke on behalf of the Responsible Courier Coalition, which consists of Lotto.com, Jackpot.com and Jackpocket — the latter of which is the center of an investigation by the Texas Rangers into a February jackpot win.

Porter questioned the commission’s fiscal impact projection, saying collectively the couriers have brought in an excess of $100 million. “I would respectfully disagree,” Porter said in reference to the commission’s projection that there would be no fiscal impact.

Porter understands there are concerns with lottery couriers like minors being able to access the apps, but he said that has not been documented by a responsible courier. “While I understand these could be concerns in other jurisdictions, they haven’t been here. There’s certainly not justification for taking this drastic step of banning a lawful practice,” Porter said.

He is asking the commission to wait for the legislature to determine if couriers should be regulated or banned. Currently, the Texas Senate already passed a bill to ban lottery couriers in the state.

Lt. Gov. Dan Patrick said during a Thursday news conference he does not expect the Texas Rangers to complete its investigations before the end of the session. That means it will be up to the lawmakers to determine if the Lottery Commission will continue to exist in Texas, or end, without the findings from the Rangers.

“We can not renew the Lottery Commission if we can’t trust it. If we can’t look at people in the eye and say to Texas, ‘You can trust the Lottery, it’s not corrupt, and you’re going to get a fair deal and the games are fair.’ If we can’t do that then we can’t extend it.”

The commission did not vote on the proposed change. The public comment period is open until April 22. The commission will then vote on April 29.