An Uber passenger in Texas recently reported receiving a free lottery ticket offer from Lotto.com through the Uber app after completing a ride. Lotto.com sells lottery tickets, including scratch tickets, online and accepts credit card payments—practices that are not legal in Texas.
This pushy partnership between Uber and Lotto.com follows a critical report by the Texas Sunset Commission staff, which scrutinized the former executive director of the Texas Lottery Commission for abusing his power to expand lottery sales to online platforms.
The report noted that Gary Grief, the agency’s former executive director, “avoided getting that guidance and allowed an environment where couriers flourished,” referring to online lottery ticket sellers.
Texas lawmakers are currently contemplating reining in the rogue commission and the proliferation of online gambling through courier companies.
The Uber passenger who reported the advertisement to Texas Scorecard said they have no history of gambling or lottery participation and were surprised by the offer.
This targeting of non-gamblers aligns with concerns raised by gambling addiction experts about the predatory nature of online lottery apps. It’s particularly concerning given that about 50 percent of American adults already play the lottery at least once a year, with 25 percent playing at least monthly and 12.5 percent playing weekly.
Research by lottery historian Jonathan Cohen, tracking lottery participation in the United States, revealed Americans spent approximately $98 billion on lottery tickets in 2021, surpassing combined spending on smartphones, cigarettes, and coffee. It’s also higher than customer spending on video streaming services, movie tickets, concert tickets, and books combined.
The demographics of frequent lottery players are particularly troubling, with the top 20 percent of players—dominated by uneducated, low-income minorities—accounting for up to 80 percent of lottery sales.
Les Bernal, director of Stop Predatory Gambling, has emphasized how state governments, through lottery advertising, have transformed a population of modest earners into habitual gamblers.
The Uber incident underscores the broader issue of online gambling expansion.
Recent studies, including one published in the Journal of Gambling Studies, found that online gamblers are at higher risk for problem gambling.
Despite generating revenue for the state, lotteries face ongoing criticism.
In fiscal year 2023, total lottery revenues in Texas reached $8.6 billion, with $2.1 billion allocated to the Foundation School Fund.
While this may seem like a large sum, it represents, on average, only 29 cents of every dollar spent on lottery tickets goes back to the state and accounts for just about 3 percent of total state income.
The Texas Lottery Commission has faced additional criticism for its handling of online lottery sales.
A recent complaint filed by the Christian Life Commission with the Texas Attorney General’s Office accused three lottery retailers of selling scratch-off tickets in violation of the Texas Lottery Commission’s rules.
As mentioned previously, Lotto.com is selling scratch tickets online.
Requests to Lotto.com and Uber for comment were not returned before publication.
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