The legislature of Indiana has made it the latest US state to ban lottery couriers amid wider public criticism of the companies, while Arizona authorities are also taking a closer look at the sector.
Senate Bill No 94 (SB94) passed the Indiana House of Representatives 82-10 last week, and will prevent the Indiana State Lottery Commission from allowing lottery courier services to operate in the state.
Specifically, the Bill states that the Commission ‘shall not operate or authorise the operation of a lottery courier service’. Lottery couriers have become widespread throughout the US, with some of the largest companies active in various states.
Jacpokcet.com is active in Arizona, Arkansas, Colorado, the District of Columbia, Idaho, Minnesota, Montana, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Texas, and West Virginia, for example. Another major player, Jackpot.com, is active in Arizona, Colorado, Massachusetts, Arkansas, New Jersey, New York and Ohio.
These companies will not be able to launch in Indiana though, at least not for a while as the law only prevents the state Commission from authorising/regulating the apps and is not an outright ban – so there could be some loopholes found further down the line.
Couriers face political pressure
Another notable element of the bill revolves around the bulk purchasing of lottery tickets. This is interesting due to the topic being the main rationale behind moves to ban lottery couriers in Texas.
Two separate instances have motivated Texan lawmakers to do so. Firstly, there was a $25m buyout by a group of individuals which saw a $95m dollar prize claimed two years ago, while a more recent case saw a woman purchase a winning ticket at a retailer owned by Jackpocket.com.
The integrity of lotteries and the potential risks lottery couriers pose to this is the central argument many legislators put forward when moving to ban the companies, which are taking note of the political pressure mounting against them.
Lotto.com opted to withdraw from Texas earlier this year due to the discussions around banning courier apps, perhaps viewing the state as a sinking ship.
It has still been represented in discussions with authorities though, with the Responsible Courier Coalition (RCC) representing the company alongside Jackpocket.com and Jackpot.com in a meeting with the Texas Lottery Commission earlier this month.
Meanwhile, many miles to the west of both Texas and Indiana, lottery couriers seem to be on the agenda in Arizona. The Arizona Lottery Commission held a meeting on Thursday 10 April, during which a discussion on courier services took place – though it is not certain what exactly this discussion pertained.
“A discussion on Courier Services will take place during this session,” a pre-meeting document read. “At this time, no report has been submitted to the Lottery Commission regarding Courier Services. The Commission is now requested to engage in a discussion on this topic.”
Arizona is already an active state for couriers, with Jackpot, Jackpocket and Lotto.com competing against each other while The Lotter became the latest company to secure market launch.
According to Vixio Regulatory Intelligence, the Arizona Lottery Commission’s meeting resulted in the decision to regulate these companies. Vixio also adds that the situation in Texas is what prompted Arizona officials to take a closer look at couriers.
Arizona’s state lottery will now be able to amend its rules authorising courier services and will prohibit retailers from selling lottery tickets to couriers without its approval, Vixio reports.
“This is kind of a way for us to both authorise the retailer that is working with the courier and authorise the courier that is working with the retailer,” said Arizona Lottery executive director Alec Thomson, according to a LinkedIn post from Vixio’s US Editor, Chris Sieroty.