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Officials from the Texas Lottery are withholding an $83.5 million jackpot from a recent winner due to a newly implemented ban on online third-party vendors that took effect after she bought her winning ticket via one of these services.
The unnamed woman reportedly purchased the winning ticket in Austin on February 17 with the help of the digital courier service Jackpocket, as reported by local station KXAN. A courier service allows customers to buy lottery tickets online for a fee.
Last month, Texas Lieutenant Governor Dan Patrick shared a video on X, questioning the integrity of the state lottery after the substantial jackpot win, and visited Winner’s Corner, the Austin store where the ticket was sold. He noted that Winner’s Corner is operated by DraftKings, the parent company of Jackpocket.
“Coincidence happens, and strange things occur frequently, but it is notable that a winning ticket, which is one of the largest lottery prizes ever, was sold at this location to a courier for $83 million,” Patrick stated in the video while in a call with a Jackpocket lawyer.
Despite these concerns, Winner’s Courier holds a license from the Texas Lottery Commission, legitimizing the sale. Here’s what you should know about the win and the ensuing debate.
Why is Texas Lottery Banning Courier Services?
In a recent announcement, the Texas Lottery Commission declared a ban on ticket purchases via courier services, citing a lack of regulatory oversight. A news release on February 24 accused couriers of selling online ticket orders after assessing winning tickets through private agreements with licensed retailers.
Texas Lottery Commission Executive Director Ryan Mindell mentioned that these services not only raise concerns for stakeholders but also fail to adhere to legal regulations and undermine public trust. He cautioned that any lottery retailer assisting a courier would face losing their license.
“Previously, our agency did not see its authority extending to regulate or ban these services. Since my appointment as executive director less than a year ago, I’ve been focused on enhancing public perception of Texas Lottery games and their operation,” Mindell stated in the news release.
What Has the Lottery Winner Said?
Attorney Randy Howry, representing the Austin woman, affirmed that his client adhered to all Texas Lottery Commission rules when buying the winning ticket via the Jackpocket app, according to People Magazine.
“She followed all the proper procedures,” Howry told People. “If you allow someone to play by your rules and they win, why would you deny payment?”
The woman purchased $20 worth of tickets through the Jackpocket app, a service she had used without issues for previous lottery tickets and scratch-offs, as reported by the Austin American-Statesman. She shared that she has gone from feeling stress and sadness to frustration and anger, asserting that she did nothing illegal or unethical.
The Texas Lottery Commission hasn’t clarified the reason for withholding the prize but has indicated to USA TODAY that the claim is under review and is part of an external investigation.
What Has the Lottery Courier Service Said?
Although Jackpocket has operated successfully in Texas since 2019, it has paused its state operations in compliance with the recent ban on courier services. In a statement to USA TODAY, the company asserted that it has always adhered to TLC guidelines and maintained transparency in its operations.
They added that the ban could impact public education funding, as Jackpocket has facilitated over $550 million in Texas lottery ticket sales, contributing revenue to schools across the state.
“We are committed to collaborating with policymakers to ensure secure lottery access and to work with the Texas Lottery Commission in developing regulations that could allow courier services to operate in Texas,” stated Pete Sullivan, Senior Vice President of DraftKings Lottery.
State Investigates Other Courier Lottery Wins
Governor Greg Abbott launched state investigations last month into two lottery wins, including the contentious ticket sold in northwest Austin.
The state is also probing an April 2023 winner, who won $95 million by allegedly purchasing nearly every possible number combination, as noted in a February 24 news release from the Governor’s office.
“Texans must have faith in our lottery system and know it operates with integrity and legality,” Abbott stated in the release. “I have tasked the Texas Rangers to thoroughly investigate these matters and identify any potential misconduct. Texans deserve a lottery that is equitable and transparent for all.”
Are Lottery Couriers Legal in Texas?
On February 27, the Texas Senate passed legislation that effectively ends the operations of couriers within the state, banning online lottery ticket sales and preventing third-party services from selling tickets, as reported by the Texas Tribune. State Senator Bob Hall, co-author of Senate Bill 28, indicated that this measure will also stop illegal ticket sales to minors or out-of-state buyers.
“SB 28 may not restore integrity in the Texas lottery — I’m not sure that’s achievable,” Hall remarked, according to the Tribune. “However, it confirms the responsibility given to the commission to ensure that lottery couriers and their associated licensed retailers can no longer function in the state in language that should be clear to them.”
Jackpocket is the designated digital lottery courier for the USA TODAY Network.
