The World Lottery Association (WLA) has presented a new policy paper, outlining its recommendations for the regulation of lottery couriers, as well as a ban on bulk buying tickets.
The body acknowledged changing habits in how people play the lottery and where they prefer to make their purchases. It can be done in a physical store or online, but the third option of using a courier service (a third-party vendor who purchases tickets on behalf of players) is one that the WLA believes is a detrimental issue.
It stated that “bulk sales negatively impact the regulated lottery industry and threaten the credibility and integrity of its products and operations.”
The policy paper sets out positions on the following issues:
- A summary of the Texas Lottery Commission case and conclusions.
- The WLA three-pronged approach of recommendations for couriers, retailers, and lotteries in jurisdictions that permit/tolerate such services.
- List of the negative impacts to the regulated lottery industry.
- Examples of other cases in different global regions.
- Description of operational models used by couriers for bulk sale.
The Texas Lottery scandal
A key driver for much of the planned reforms was “the largest fraud in state history,” otherwise known as the Texas Lottery scandal.
In April 2023, the Lotto Texas jackpot reached $73 million. A rollover on the Wednesday draw saw the prize pot jump to $95 million for the Saturday draw, but all was not as it seemed, realizing some long-held fears.
What unfolded was that $25 million worth of tickets were sold through middlemen who were buying on behalf of out-of-state players. The transactions were handled using computers, iPads, and apps, which isn’t allowed under Texas law.
Lone Star state lottery rules had been broken, as the law says tickets have to be sold in person, over the counter, but the winning ticket came from the pool of $25 million, all bought by an out-of-state syndicate.
The chaos is still unfolding.
All courier activity should be regulated – WLA
Digital couriers include the likes of DraftKings-owned Jackpocket, Lotto.com, and Jackpot.com, which are regulated in some geographical areas but not others.
The WLA has called for all courier activity to be regulated through legislative or lottery rules, with a specific focus on how tickets are ordered and delivered.
Explicitly, it wants bulk sales to be prohibited.
The lottery organization also presented its proposals for ID and background checks on retailers that partner with couriers, as well as introducing geolocation and verification of lottery players.
Image credit: WLA
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