The Battle Over Online Lottery Couriers: Lotto.com vs Texas Lottery Commission
Texas Lottery Commission Faced with Lawsuit by Lotto.com over Imposed Ban
In a dramatic turn of events, Lotto.com, a popular online lottery courier service, has taken legal action against the Texas Lottery Commission (TLC) over a sudden bid to ban third-party courier services. Filed in Travis County, the lawsuit alleges the TLC violated due process by bypassing the mandatory 30-day notice for rule changes and flouting years of past guidance recognizing courier operations.
The TLC and Lotto.com had enjoyed a collaboration stretching back for years. The agency guided Lotto.com on using state lottery logos, supported its tech advancements, and appreciated the accessibility courier services offered to lottery products. Yet, in a shocking policy U-turn, the Commission declared courier services illegal in February 2025, threatening harsh penalties for retailers partnering with such services.
In an attempt to neutralize Lotto.com's business model, the TLC also imposed a limit on stores to just five lottery terminals each, a move Lotto.com sees as a crippling blow. The service relies on multiple retailer partnerships to manage high volumes of ticket purchases for online customers, making the terminal cap a significant operational roadblock.
Lotto.com's lawsuit alleges that the Commission illegally changed regulations without public input and exceeded its authority in redefining courier legality. Remarkably, the company isn't seeking financial compensation—instead, it seeks court declarations that the TLC's new rules are unenforceable, with the goal of preserving Texans' access to buying lottery tickets online legally and seamlessly, a privilege they've enjoyed since Lotto.com entered the Texas market in 2022.
If the court rules in favor of Lotto.com, courier services could continue unabated under the previous model, maintaining a widely favored method of lottery participation. However, if the TLC's restrictions stand, digital ticket ordering could be shut down across Texas, disrupting consumer habits and impacting lottery sales revenue, which supports valuable public programs like education.
As tensions mount, the TLC is due to vote on the proposed courier ban at its next regular meeting on April 29, 2025. In the meantime, Lotto.com's future hangs in the balance, leaving the broader Texas gaming community watching with bated breath. This legal battle between Lotto.com and the TLC may set a benchmark for the evolution of lottery regulation, not just in Texas, but across the nation.
The Lawsuit: A Crucial Test for Texas Lottery Courier Services
Amid a plethora of key allegations, Lotto.com's lawsuit aims to halt the TLC's crackdown on third-party lottery courier services. Filed on April 24, 2025, the suit alleges the TLC enacted unlawful, sudden rule changes without proper legislative oversight.
- Legal arguments: In its lawsuit, Lotto.com argues that the TLC's February 2025 actions, including the confiscation of lottery terminals and announcement of the ban, were arbitrary and unlawful. The company insists it operated legally under the Commission's previous policies.
- Timing: The TLC's scheduled vote on the courier ban is set for April 29, 2025. If the court doesn't intervene before then, the restrictions risk permanent adoption.
- Investigations & leadership changes: The TLC is currently under investigation by the Texas Attorney General's office and Texas Rangers. Executive Director Ryan Mindell resigned on April 21, 2025, following the resignation of his predecessor, Gary Grief, in 2024.
- Legislative context: Texas Senate Bill 28, which criminalizes courier services, passed the Senate unanimously. Lt. Gov. Dan Patrick has emphasized the priority to ban couriers.
As of April 28, 2025, the lawsuit remains unresolved with no injunction issued ahead of the TLC's planned April 29 vote. The case's outcome may rest on whether the courts agree the TLC violated administrative procedures or overstepped its authority.
- Lotto.com's lawsuit accuses the Texas Lottery Commission (TLC) of enacting unlawful rule changes without proper legislative oversight, claiming they operated legally under the Commission's previous policies.
- The TLC's scheduled vote on the courier ban is set for April 29, 2025, and if the court doesn't intervene before then, the restrictions risk permanent adoption.
- The TLC is currently under investigation by the Texas Attorney General's office and Texas Rangers, with the resignation of Executive Director Ryan Mindell on April 21, 2025, following the resignation of his predecessor, Gary Grief, in 2024.
- Texas Senate Bill 28, which criminalizes courier services, passed the Senate unanimously, with Lt. Gov. Dan Patrick emphasizing the priority to ban couriers.
- As of April 28, 2025, the lawsuit remains unresolved with no injunction issued ahead of the TLC's planned April 29 vote, potentially resting on whether the courts agree the TLC violated administrative procedures or overstepped its authority.
