Texas judge puts courier ban on hold following lawsuit

LEGAL

The lottery courier that sued the Texas Lottery Commission to block enforcement of a new rule that would’ve put the company out of business will likely prevail in its case, a judge said in a ruling late last week.

LTC Texas, which operates New Jersey-based third-party vendor Lotto.com, sued the commission last month after it adopted a rule that would revoke the license of any lottery retailer that does business with couriers. In her first ruling in the case, State District Judge Sherine Thomas on Friday issued a temporary restraining order that prevents enforcement of the rule against LTC specifically and set a hearing on the matter for May 27.

In her ruling, Thomas said the lottery commission may not “seize or repossess terminals” belonging to LTC Texas or take any other enforcement action. And although she said in the ruling that LTC had demonstrated it is likely to win its case, that ruling should not be viewed as a final judgment.

The lottery’s acceptance of couriers has drawn the ire of several high-ranking lawmakers in recent years, including Lt. Gov. Dan Patrick, who have complained that the companies provide a work-around to the 1991 lottery statute that forbids using a telephone to buy or sell game tickets. A bill that would outlaw courier companies has passed the Senate and is awaiting action in the House.

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