05-05-2025
Judge: Lottery commission cannot take action against courier company that brought lawsuit
The lottery courier that sued the Texas Lottery Commission to block enforcement of a new rule that would've put the company out of business will likely prevail in its case, a judge said in a ruling late last week.
LTC Texas, which operates New Jersey-based third-party vendor sued the commission last month after it adopted a rule that would revoke the license of any lottery retailer that does business with couriers. In her first ruling in the case, State District Judge Sherine Thomas on Friday issued a temporary restraining order that prevents enforcement of the rule against LTC specifically and set a hearing on the matter for May 27.
In her ruling, Thomas said the lottery commission may not "seize or repossess terminals" belonging to LTC Texas or take any other enforcement action. And although she said in the ruling that LTC had demonstrated it is likely to win its case, that ruling should not be viewed as a final judgment.
The lottery's acceptance of couriers has drawn the ire of several high-ranking lawmakers in recent years, including Lt. Gov. Dan Patrick, who have complained that the companies provide a work-around to the 1991 lottery statute that forbids using a telephone to buy or sell game tickets. A bill that would outlaw courier companies has passed the Senate and is awaiting action in the House.
On Monday, the Senate State Affairs Committee heard testimony on another bill that would abolish the lottery altogether. No vote was taken, but the author of Senate Bill 1988 said that the commission's allowance of couriers to operate for several years before its recent course reversal demonstrates that the state-run gambling operation has lost touch with its mission.
More: Winning $83.5 million Lotto Texas ticket sold in North Austin by lottery courier company
"It will be crystal clear to everyone listening that the Lottery Commission has failed to uphold any of the principles of honesty and integrity," said Sen. Bob Hall, a Republican from Edgewood. "It is a well known fact that gambling, and the lottery is gambling, always attracts a culture of corruption."
Hall first sounded an alarm about courier companies two years ago after an anonymous player won a $95 million Lotto Texas jackpot in April 2023.
Although the tickets purchases by the player were made in person and not by phone, a group reportedly organized by a gaming entrepreneur operating out of Malta used lottery couriers to buy up nearly all the 25.8 million Lotto number combinations, virtually ensuring it would win the jackpot.
Until early this year, lottery officials said they were powerless to regulate courier companies because they purchased tickets. The executive director at the time, Ryan Mindell, reversed course after he was grilled by lawmakers, and recommended the action that prompted LTC Texas' lawsuit.
Mindell resigned last month without explanation.
The Texas lottery generates about $8 billion in sales annually and turns a profit of about $2 billion for the state.
This article originally appeared on Austin American-Statesman: Courier company wins first round in lawsuit against Texas lottery
