Texas Lieutenant Governor Dan Patrick has called for an investigation into relationships between the Texas Lottery, retail stores, and couriers.
Recently, the fifth-largest lottery jackpot in Texas State history, $83.5 million, was purchased at a retail store owned by lottery courier company Jackpocket (acquired by DraftKings).
Lottery couriers are not explicitly mentioned in the majority of state legislation, so they are technically unregulated. The use of couriers is not required in states where online lottery is legal, which shows the growing appetite for digital products and adoption.
Jackpocket, now owned by sports betting behemoth DraftKings, partnered with BitPay back in 2016 to allow users to purchase lottery tickets using crypto.
Courier Model Under Scrutiny by Lt. Governor
The courier company no longer has such an integration. Still, with Texas’ BitCoin reserve hearing last week being described as ‘symbolic’ in the crypto industry, there’s a chance it could be back on the cards in the future.
Patrick suggested that many citizens had questions about the integrity of the lottery. “The bottom line is if people are going to have confidence in the lottery, we have to be sure no one has an advantage,” he postulated.
He added: “Again, we’re not suggesting anything illegal, but this is not the way the lottery was designed to operate. It was designed to operate by someone coming into a store, giving someone cash and getting a ticket back, not for machines behind walls and not for a courier service and a retailer all being connected.”
“So, when someone wins a ticket here for $83 million, it makes everyone ask a lot of questions,” he added.
Patrick also asked an attorney on video about the legality of the courier company owning the retail store Winners Corner. The attorney assured him the outlet is a licensed lottery retailer under Texas Law.
The Lt. Gov. concluded his video on X with: “It’s time we take a deep look at these courier services and these retail units, especially when they’re owned by the same company.”
Lottery Couriers: A Regulatory Gray Area?
Lottery Courier services are companies typically independent of the lottery that fulfill customer ticket orders by purchasing tickets from state-licensed retailers.
Two states, New Jersey and New York, offer full regulation for couriers. Couriers must be registered and licensed and adhere to traditional licensing conditions such as geolocation verification, promotional guidelines, and age restrictions.
Courier services are active in over fifteen US states despite only two having specific regulations. Alabama and Massachusetts have had legislation introduced to explore the potential regulation, but none have progressed.
In Texas, specifically, a bill proposing an outright ban on lottery couriers passed 29 votes to 2 in 2023 but died in the Senate. Recent scrutiny has led to the Texas Lottery asking the Attorney General’s office to confirm whether it has any regulatory right over couriers or if prospective legislation is in the offing.
The Lone Star State is one of the few states in the United States of America where there remains vehement opposition to any form of gambling legalization. However, positive talks around BitCoin last week, combined with a federal appetite for deregulation, give crypto iGaming enthusiasts a glimmer of hope for the future.
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