Lotto.com Sues Texas Lottery Commission Over Courier Ban

A Legal Push to Keep Couriers Running

The lawsuit claims that the TLC ‘actively assisted in the setup and operation of Lotto.com and other couriers in Texas’ before performing an ‘about-face’ and prohibiting the industry under political pressure.

The U.S. lottery market saw couriers like Lotto.com handle $101 million in Texas ticket sales in 2023. Now, the TLC’s February 24 ban threatens to halt this.

Lotto.com argues the TLC skipped a 30-day public notice for rule changes and lacked authority to regulate couriers, having previously said so.

“After the lottery commission said they had nothing to do with the couriers, they couldn’t regulate them. Guess what they did six days later? They ended all courier service operating in Texas,” said Lt. Gov. Dan Patrick. Lotto.com seeks a temporary injunction to keep operating.

A History of Support Turned Sour

The lawsuit highlights TLC’s past cooperation, including a 2021 letter from then-operations director Ryan Mindell stating, “Lotto.com, as a courier, was not required to obtain a license and its operations did not breach the Texas penal code.”

Lotto.com worked with TLC on digital scratch-offs launched in 2023. Yet, the TLC’s ban, spurred by a $95 million 2023 jackpot scandal, seized dozens of courier terminals “It is time to reconsider the agency’s politically motivated decisions regarding lottery couriers,” said the Coalition of Texas Lottery Couriers, per fox7austin.

Lotto.com distances itself from the 2023 scandal, where a group bought 25.8 million tickets. CEO Tom Metzger warned TLC against extra terminals, but the agency approved them. A separate lawsuit claims former TLC director Gary Grief aided the scheme. With $2 billion raised for Texas schools yearly, the ban could cut revenue,

Political Heat and Next Steps

The TLC’s shift followed pressure from lawmakers like Sen. Charles Schwertner, who said on radio, “The lottery is beyond repair and should be abolished,.” Senate Bill 28, banning couriers, passed the Senate unanimously but awaits House action. Mindell resigned on April 21 amid Texas Rangers and Attorney General probes into the 2023 and 2024 jackpots.

The TLC board meets April 29 to vote on the ban.

Lotto.com’s suit, backed by a 60-page filing, seeks to restore trust in the $64 billion global lottery market. “The bottom line is this, for it to continue, you as the taxpayers and those who play the lottery must be assured that every game is honest,” Patrick said, per fox7austin.com.