Texas lottery courier ban could lead to US regulation, claims Spectrum Gaming EVP
Joe Weinert says the “inevitable” decision to ban lottery courier services in the state could act as a precursor to wider legislation for the growing sector
The decision to ban lottery courier services in Texas could be the “first step” to formal regulation across the US, according to Spectrum Gaming Group executive vice president (EVP) Joe Weinert.
Earlier this week, the Texas Lottery Commission (TLC) ruled that lottery couriers are no longer legal, with the policy change set to come in with immediate effect.
It comes after several Texas lawmakers have called for a ban, amid fears that third-party involvement could compromise the integrity and fairness of state lottery operations.
Lottery couriers serve as conduits for customers, who are able to purchase tickets via an app, before the courier buys and stores the physical ticket.
Spectrum Gaming previously authored a report into the future of lottery courier services, DraftKings-owned Jackpocket and other market leaders, such as Jackpot.com and Lotto.com.
Spectrum’s report, released in 2023, noted that lottery courier services aided the expansion of lottery play, bringing the vertical to younger audiences as well as other under-served players.
However, the decision from the TLC, which previously claimed that such a verdict was outside of its authority, could prove vital in shaping how lottery courier services are enforced in the long-term, according to Weinert.
“I actually think this could be the first step toward formal legalization or regulation,” he explained.
“I think what happened is they found themselves with a tiger by the tail, and they didn’t know what to do with it, so they have outright banned it.
“That is an easier and probably more prudent process than trying to make sense of something quickly and then hurry in rules to permit it.
“Having said all of that, this being Texas, where any sort of gambling legalization is a tough slog, it could be many years, and possibly even ever, if the couriers are allowed again.”
DraftKings has since confirmed it has pulled Jackpocket’s services from the Lone Star State. The Boston-based giant snapped up the business for $750m in May 2024.
Peter Sullivan, Jackpocket founder and DraftKings senior vice president (SVP) of lottery, has insisted there is a “misconception” around the services offered by courier services.
It is a sentiment shared by Weinert, who said: “I think a lot of people are trying to figure out exactly what this form of lottery, what this lottery channel is all about, absolutely.”
Asked whether the TLC’s decision could hinder M&A activity within the sector, with traditional sportsbooks looking for new cross-sell opportunities and revenue diversification, Weinert added: “I still think there’s enormous opportunity.
“But they have their work cut out for them to educate and demonstrate the regulatory integrity and the commercial benefits of this lottery channel.”
Lotto.com has since issued its own response to the ban, expressing its “disappointment” at the TLC’s verdict.
“Lotto.com echoes the sentiment recently shared by the Coalition of Texas Lottery Couriers,” a company statement read.
“We maintain that lottery couriers have operated legally in Texas since 2019, and we are disappointed by the sudden announcement issued.
“Lotto.com will continue advocating for a regulatory solution to ensure millions of Texans can safely and conveniently order lottery tickets.”
In the most recent Texas legislative session, three separate bills in the form of HB 389, SB 28 and SB 79 have all been filed in an effort to prohibit lottery couriers.
The lottery courier ban came soon after an $83.5m winning ticket was purchased via Jackpocket and sold by Austin-based retailer Winners Corner.
Reports soon emerged that Jackpocket also owned the retail unit, sparking further concerns surrounding lottery integrity.
Texas Lieutenant Governor Dan Patrick issued a scathing assessment of the TLC’s confirmation of the policy change, insisting the commission only acted after he visited the retailer.
“Today’s action is an obvious admission that the Texas Lottery Commission had the oversight authority all along and allowed these businesses to creep into Texas and undermine the integrity of the Texas Lottery,” Patrick wrote on X.
“The truth is, the only reason the Texas Lottery Commission acted today was clearly because I exposed the courier services and the commission when I showed up at one of the courier stores last week.
“Suddenly, they found religion and now want integrity in their game.”