Millions of dollars in lottery tickets are being sold through websites and apps, raising concerns about the vulnerability of children to these sales.
This issue was highlighted during an ongoing review of the Texas Lottery Commission by the Sunset Advisory Commission, which evaluates state agencies and recommends efficiencies, changes, or even their abolishment.
The lieutenant governor, as president of the Senate, and the Speaker of the House each appoint five members from their respective chambers to the Sunset Commission. Each also appoints one public member.
During a recent hearing, representatives from the Texas Lottery Commission faced criticism for their seemingly lax approach toward the growing number of lottery courier companies operating in Texas. According to a staff report from the Sunset Commission, the Legislative Budget Board estimated that couriers accounted for approximately $173 million in lottery sales last fiscal year. These unlicensed courier companies function as intermediaries, selling lottery tickets online to individuals while purchasing the tickets from licensed retailers.
The nature of this business model leaves it open to potential misuse by minors, a concern raised by commission members to Ryan Mindell, the executive director of the Lottery Commission.
“You have little children in the state of Texas buying lottery tickets. Apparently, underneath your watch, that’s a problem, right?” asked State Rep. Matt Shaheen.
“If minors were buying lottery tickets, that would be a serious problem,” Mindell admitted, noting that the Lottery Commission relies primarily on a reactive, complaint-driven system to address age violations, rather than proactive monitoring and enforcement.
“If a person called someone on the phone on the way home and said, ‘Go buy a lottery ticket,’ I don’t have any jurisdiction over that person,” he added.
Roger Elswick, a public member of the Sunset Commission, questioned why the Lottery Commission had not sought opinions from the attorney general; instead, they relied on their interpretation of the law.
“If you’re not sure if courier sales are allowed or online sales are allowed, then why are we doing it at all?” asked Elswick.
“There’s going to have to be a solution…. We need to make sure that there’s age verification so kids can’t be gambling online,” said State Rep. Lacey Hull.
Robert Rivera, the chairman of the Lottery Commission, sought to reassure the Sunset Commission, pledging that the Lottery Commission would “look into best practices nationally” and collaborate with law enforcement to address the issue.
Additionally, commission members expressed concern that online courier services accept credit card payments, despite state law prohibiting using credit cards for lottery ticket purchases.
