Lotto.com announces withdrawal from Texas

Legislation

Lotto.com has withdrawn from the Texas market following the vote by the Texas Lottery Commission to ban lottery courier companies from selling tickets online amid lawmakers’ ongoing criticism of the practice.

The vote was an about-face for the agency, whose officials previously claimed the commission could not regulate the services.

Couriers are third-party services that sell lottery tickets through websites or apps, then print and scan the tickets at licensed lottery retailers that they usually also own. The businesses have operated in Texas for almost a decade, but have recently drawn legislators’ ire. Lawmakers fear such online sales enable illegal purchases by out-of-state or underage players.

The ban allows the commission to immediately revoke the lottery license of any retailer that knowingly assists or works with couriers. Lawmakers are currently weighing legislation that would impose similar restrictions.

Sergio Rey, the commission’s acting deputy executive director, said the agency’s administrative branch would immediately begin enforcing the new rules.

Ticket sales from couriers collectively make up less than 10% of the lottery’s revenue. But the companies’ ability to market to a wider digital audience has allowed some couriers to individually outsell specific traditional retailers, like local convenience stores. Stores operated by Jackpocket and Lotto.com, the nation’s two largest couriers, collectively sold over $226 million in tickets through 2024, while the top five traditional retailers collectively sold $34 million.

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