Lotto.com Sues Texas Lottery over Courier Ban
Lottery courier platform Lotto.com has initiated legal proceedings against the Texas Lottery Commission over its sudden decision to prohibit courier services.
LISTEN TO THIS ARTICLE:The lawsuit, filed in Travis County last Thursday, named the TLC and Texas Lottery Acting Deputy Executive Director Sergio Rey as defendants.
According to Lotto.com, the agency's decision to shut down lottery courier services resulted from undue influence from the state legislature. The company claims the move terminated years of cooperation with the Texas Lottery and will cause significant disruption to its business.
The complaint also alleges the TLC overstepped its authority by announcing the ban and confiscating terminals without following the mandatory 30-day rule change notice and public comment process.
The Fallout from Big Wins
Over the past weeks, controversy has been brewing around lottery courier services following a $95 million Lotto Texas jackpot win by an entity that used several couriers to buy up nearly all possible number combinations.
The industry's spotlight intensified after a Texas resident won an $83.5 million jackpot with a ticket purchased through one of its services. However, the payment of the prize money has been put on hold pending the outcome of state investigations into lottery couriers.
Despite the heightened scrutiny, lottery couriers were not expecting the drastic ban by the Texas Lottery. Their appeals for reconsideration also did little to sway the TLC.
Currently, any retailer found to be working with or as a courier risks losing their lottery license. The Lottery also implemented new rules to prevent future buyout attempts, including a slower approval process for additional terminals and a five-terminal limit per retailer.
The policy drew mixed reactions from lawmakers, with some viewing it as a belated response and others backing it as a crucial step to address potential money laundering and other illegal activities.
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In the suit, Lotto.com contends that the new terminal limit would make it impossible for them to operate. It also stated that the policy "illegally and unconstitutionally" penalizes law-abiding businesses and has forced them out of the Texas market.
Following the ban announcement in February, some couriers like Jackpocket have exited the state, while Lotto.com continues to offer tickets for Texas draw games and scratch-offs. If the TLC's ban is upheld, Lotto.com and other couriers still operating in Texas will be compelled to shut down their operations in the jurisdiction.
Rather than financial compensation, Lotto.com seeks a court order to invalidate or block the enforcement of the TLC's rule changes.
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