The Texas Lottery Commission (TLC) is being sued over the agency's statewide ban on online lottery courier services. This comes amid multiple state investigations into the state's lottery system and the sudden resignation of the commission's executive director earlier this week.
The lawsuit was filed Wednesday by Lotto.com, one of the nation's leading online lottery courier services. The company argues the TLC's recent move to ban online courier services — third-party companies that buy and deliver lotto tickets on behalf of customers — is unfair and illegal. They claim the TLC changed the rules without warning, after previously allowing and even helping it operate in Texas.
According to the lawsuit, Lotto.com worked closely with state officials to follow the law, even receiving permission to use official state logos and state-approved equipment when the company began operating throughout Texas in 2022. The company says the TLC asked the company to help brainstorm ways to prevent jackpot manipulation, according to the lawsuit.
"In return, the Commission changed rules on the fly and without due process," the lawsuit read.
The Texas Lottery Commission declined to comment, citing ongoing litigation.
How did we get here?
The controversy stems from two major lottery drawings:
- A $95 million jackpot from April 2023, won after someone purchased nearly all 25.8 million possible number combinations.
- A $83.5 million jackpot won in February. The winning ticket was brought through an online courier service, prompting concerns about the legality of such services.
Gov. Greg Abbott in February directed the Texas Rangers to investigate the winnings. That same day, the TLC issued a new policy banning lottery couriers, arguing that they violate state laws by allowing money laundering and the sale of fake lotto tickets. Texas Attorney General Ken Paxton also launched an investigation into the state's lottery system shortly afterwards.
This led Jackpocket, another courier service that operates in Texas, to suspend its operations in the state.
That same week, Texas lawmakers fast-tracked a bill that would prohibit the purchase of a Texas lottery ticket through a courier. Senate Bill 28 still needs to clear the Texas House before becoming law.
Amid the growing turmoil, TLC Executive Director Ryan Mindell resigned on Monday. The commission's CFO, Sergio Ray, will serve as acting deputy executive director (the lawsuit also names Ray as a defendant). The TLC board will meet next week to determine the selection process for its next executive director. Mindell's resignation came about two months after TLC Commissioner Clark Smith stepped down from his post.
The Coalition of Texas Lottery Couriers, which represents companies like Lotto.com, has adamantly pushed back against the ban, arguing that the companies have repeatedly asked to be regulated since they began operating in Texas.
"This underscores the inconsistency and lack of accountability demonstrated by the agency when, in the face of political pressure, it abruptly decided in February that lottery couriers should be banned," the organization said in a statement.
Copyright 2025 KERA