Oregon Bill Looks to Shake-Up State Lottery Regulation

The Oregon House Committee on Commerce and Consumer Protection has passed a bill that seeks to alter the state’s lottery regulations.

House Bill 3115 aims to reduce lottery fraud, prevent tax exploitation, and provide winners with enhanced privacy protections. Rep. John Lively’s bill passed through the House Committee on Commerce and Consumer Protection by a 52-1 vote after a third reading.

A key provision of the bill is the ban on the sale or transfer of winning lottery tickets. The proposed legislation, under Section 2, states: “A person may not: (a) Sell, or offer to sell, a winning ticket or share; (b) Purchase, or offer to purchase, a winning ticket or share; or (c) Claim, or offer to claim, a winning ticket or share for another person for compensation.”

The measure looks to prevent the after sale of tickets, which is traditionally done where individuals or entities purchase winning tickets from others. Given existing Oregon law, winning lottery tickets are purchased to circumvent tax or legal obligations.

Subsequent legislature reads: “If the amount of the purchase price of a lottery ticket that is purchased in violation of Section 2 of this Act is allowed as a deduction for federal tax purposes, the amount of the purchase price shall be added to federal taxable income for Oregon tax purposes.” This would then capture anyone who purchased a lottery ticket with the aim of reducing their tax burden.

The amendment, added to ORS chapters 316 and 317, would align the Oregon lottery’s fraud prevention measures with broader state policy. The rule would apply to lottery ticket purchases made on 1 January 2026 or thereafter.

Oregon’s lawmakers are also looking to protect the privacy of lottery winners. Should the bill pass, players’ names and addresses would be exempt from disclosure to the public unless the prize winner provides written authorization for the disclosure.

Could Crypto Lottery Hold the Key?

Blockchain and digital currency enthusiasts would point to the anonymity provided by blockchain and crypto transactions. No identity is disclosed through wallet purchases. Given the recent furor around the integrity of lotteries in the United States (most notably Texas), exploring crypto iGaming opportunities could help fix what some perceive to be a broken system.

The largest section of the bill is dedicated to governing who can claim lottery prizes and under what conditions. The bill prohibits minors (those under the age of 18) from collecting draw-based lottery winnings. For video lottery winnings, a claimant must be over 21.

There is a one-year claim deadline, with the only exception being military service members on active duty. They are eligible to request an extension on the deadline to ensure they do not lose winnings due to active deployment.

The bill also outlines that fraudulent or ineligible tickets will not be honored, including those that are stolen, counterfeit or unreadable. A final stipulation is that employees of the lottery or commission members and their families are ineligible for purchasing tickets or claiming

Lottery Trouble in Texas

The Texas Lottery Commission recently moved to ban lottery couriers, claiming that existing state law prohibits the service.

This was a significant move from its previous position of having little to no control over third-party lottery sales in the state.

Ryan Mindell, Executive Director of the Texas Lottery Commission, asserted: “Lottery courier services operating in Texas have been a significant concern for many of our stakeholders. Since I became Executive Director less than a year ago, I have been keenly focused on making changes to improve the public’s perception of Texas Lottery games and how they are played and operated.”