Texas Lottery Commission Collapsing Amid Scandal

Things are getting messier at the Texas Lottery Commission. Just a week after its executive director resigned, the commission banned all third-party lottery courier services, and now, there’s real talk that the entire Texas Lottery might be on the chopping block.

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Courier Services Blamed for Jackpot Controversies

Courier services like Lotto.com and Jackpocket let Texans buy lottery tickets online, but critics say these platforms have opened the door to potential fraud. Two massive payouts, one for $95 million and the other for $83.5 million, raised red flags. In one case, the winner allegedly used a courier service. In the other, someone reportedly bought nearly 26 million number combinations to guarantee a win.

Now, the Texas Rangers and Attorney General are investigating whether courier services gave certain players an unfair advantage and whether state regulators looked the other way.

This all comes as the Texas Lottery Commission undergoes its 12-year review by the Sunset Commission, a process that determines whether the agency should even continue to exist. Earlier this year, the Texas House made a bold move when they zeroed out the TLC’s budget. Unless that decision changes before the legislative session ends in June, the lottery as we know it could vanish.

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New Ban, New Leadership, and a Big Drop in Sales

With public trust shaken, the commission is making moves. Acting executive director Sergio Rey says enforcement of the courier ban began immediately. Any business still working with couriers risks losing its license.

But not everyone is on board. Lotto.com has sued the state, saying the ban came out of nowhere after years of state cooperation. The Coalition of Texas Lottery Couriers says this is more about politics than public safety. They’re backing a bill that would regulate couriers instead of banning them outright through licensing fees, annual audits, and more oversight.

Meanwhile, lottery sales are already taking a hit. Scratch-offs and draw game revenues have dropped since the scandals made headlines. Some Texans have flat-out said they no longer trust the system. “They’ve lost players. There’s no doubt,” said longtime gambling critic Rob Kohler. “People feel like it’s fixed.”

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Is the Lottery’s Future in Jeopardy?

Texas brings in around $2 to $3 billion from the lottery every two years. Losing that would leave a massive hole in the state budget. But with political pressure, public skepticism, and multiple investigations in motion, there’s no clear answer yet on what’s next.

A public Texas Lottery Commission meeting scheduled for April 29 may shed more light. But one thing is certain: whether it’s a total overhaul or a shutdown, big changes are coming for the Texas Lottery.