The World Lottery Association (WLA) has weighed on the debate around lottery couriers in the US, and it’s not looking entirely rosy for these companies.
The association, which as its name suggests represents countless state-backed lotteries and the B2B firms which service these operators, has accused couriers of negatively impacting the industry.
In a statement issued this week, the WLA took aim at what it calls ‘bulk sales’. Although it has not singled out couriers themselves, it has taken note of the potential for bulk sales to be made through these platforms.
“Unfortunately, bulk sales negatively impact the regulated lottery industry and threaten the credibility and integrity of its products and operations,” the WLA’s statement read.
Unsurprisingly, there is one particular case study that the WLA has taken note of – Texas.
Everyone’s talking about Texas
The 2023 bulk buyout incident that hit the Texas Lottery and has cast a long shadow over the state’s wider lottery ecosystem ever since is explicitly referenced by the WLA.
Two years ago, a syndicate involving a man based in Malta and one in London organised the buyout of $25m worth of Texas Lottery tickets, subsequently winning a huge jackpot payout of $95m.
The fact that the individuals involved used four courier platforms to organise the buyout has caused particular alarm. An incident occurring in February this year in which a woman won a $83.5m jackpot purchased via DraftKings-owned Jackpocket and picked up from a DraftKings-owned store further added to this.
The incident culminated in legislators voting to abolish the Texas Lottery Commission (TLC). Meanwhile, the woman who won the $83.5m jackpot is taking action against the Texas Lottery, which has been refusing to pay out.
This latter incident is not of concern to the WLA, but the 2023 incident certainly is, and the association has highlighted similar incidents in other countries such as a bulk purchase in Switzerland and one in Germany, the latter organised by an Australia-based syndicate.
The WLA’s stance can best be summarised in the following extract:
“The events in Texas concerning a $95M win in February 2023 highlight the red flags that can arise from unregulated courier activities, specifically in situations where the game’s jackpot exceeds the game matrix (number of possible combinations); meaning that the
purchase of all or nearly all of the possible combinations all but guarantee a positive return on their investment.”
The association has noted that changes in the wider betting and gaming sector, particularly technological ones, are in turn driving changes in how consumers interact with products – including lottery ones.
In the WLA’s view, these changes require regulatory action, including new requirements for lotteries, retailers and couriers. In the case of the latter, the association says that bulk sales should be prohibited, age verification should be mandated, geolocation used to determine user location within a lottery’s jurisdiction, and requirements around ticket ordering, digital delivery, retention and redemption.
For retailers, the WLA argues that outlets should be subject to limitations on the number of terminals and sales. It also argues that lotteries should be able to shut off terminals or stop ticket sales in the event sales levels are exceeded.
Lastly, the WLA states that lotteries should be required to identify vulnerabilities in products and monitor sales patterns of said vulnerable products – clearly referring to products like couriers – and intervene rapidly if necessary.
The WLA’s opinions have already been taken into account by government-backed lotteries. The Oregon Lottery, for example, cited the WLA’s stance on couriers when putting in a request for courier regulations to the state government.