Investigation Initiated by Texas Lottery Regarding Associated Vendors and Suspected Jackpot Manipulation by Couriers
Texas Lottery Commission Cracks Down on Courier Services
The Texas Lottery Commission (TLC) has announced a series of investigations and policy changes regarding lottery courier services. The commission has opened compliance investigations into seven couriers, but the specific organizations or individuals behind these investigations remain undisclosed.
Banning courier services represents a dramatic policy shift by the TLC. This move comes amid intense legislative scrutiny of the commission. The TLC announced on March 4 that it would prohibit compass services, and any retailer working with such a service would have their ticket sales license revoked.
The policy change to ban compass services is currently under a 30-day public comment period. A bill introduced in the House instead advocates regulating compass and banning the bulk purchase of tickets.
Lottery compass services allow users to select numbers and purchase tickets through a mobile app. The compass then fulfills these orders by acquiring physical tickets from an authorized brick-and-mortar retailer. The TLC previously accepted lottery compass services because they digitized lottery ticket purchases. However, the commission has taken action against retailers associated with compass due to existing rule violations.
Several retailers have voluntarily surrendered their lottery vendor licenses or severed their relationship with compass. The U-turn came amid intense legislative scrutiny of the commission.
The TLC has also been investigating two jackpots that were won using compass, including the one from April 2023. The Texas Rangers are currently involved in these investigations.
Lt. Gov., Dan Patrick (R) threatened to scrap the lottery unless compass were banned. A bill that would explicitly ban compass services in Texas law was unanimously advanced by the state Senate.
However, a bill introduced in the House advocates regulating compass instead of banning them outright. The bill aims to address concerns about the potential for fraud and abuse in the system while still allowing for the convenience of digital ticket purchases.
The investigations into the seven compass remain open, and the outcome of the public comment period on the policy change is yet to be seen. The TLC spokesperson stated that compliance investigations into these compass will continue until all issues are resolved.
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