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As lottery systems around the US continue to undergo major changes, Oregon is joining in on the trend with plans to regulate retailers who partner with lotto couriers and ban ticket sales to customers outside the state.
The Oregon Lottery is aiming to address significant legal and integrity concerns that have been highlighted by industry stakeholders, media, and various lottery organizations. It confirmed this in a revised proposal submitted on July 14.
Currently, the Lottery is aware of several courier services operating within Oregon, as well as a handful of retailers who collaborate with these couriers. However, the extent of their ticket sales remains unclear, and the Lottery admits it lacks complete knowledge of how many courier services and partnered retailers exist in the state.
This situation creates a grey area, particularly for popular couriers like Jackpocket and Lotto.com, which operate without formal regulatory oversight.
Two Main Actions Proposed
To mitigate potential risks to its constitutional obligations of fairness and integrity, the Lottery has proposed two main actions: banning sales of lottery tickets to out-of-state customers and implementing new requirements for retailers working with courier services.
These requirements would include maintaining records of ticket purchases and ensuring secure storage of tickets for couriers. The Lottery acknowledged that reputable courier services may already comply with similar requirements in other jurisdictions. A public hearing on this matter is scheduled for August 20.
California, Indiana, and Texas Inspired Revised Proposal
The Oregon Lottery’s push to regulate couriers and prohibit out-of-state ticket sales has been shaped by recent developments in other states. In its proposal, the Lottery noted that rising concerns about courier services in these states have prompted a reassessment of its current policies.
“Since April 2024, concerns about couriers have escalated through media reports, foreign regulators and state legislatures … Direct communications to the Oregon Lottery from both international and U.S. lotteries as well as national gaming bodies have further intensified the pressure and made it clear that Oregon needs clear regulatory guidance for Lottery retailers who work with couriers,” the lottery wrote.
Specifically, the Oregon Lottery pointed to California, Texas, and Indiana as key examples of states that have taken action against couriers.
In California, the Attorney General issued an opinion in 2022 asserting that couriers should be prohibited by law. Indiana’s governor also signed a ban this spring, reflecting a growing trend among states to impose stricter regulations on courier operations.
In April, the Texas Lottery Commission voted unanimously to ban couriers following fraud allegations related to ticket sales. This decision led to controversy, with leading couriers asserting that the commission acted under political pressure, prompting Lotto.com to challenge the ruling in court. Last month, the state shut down its Lottery Commission, transferring oversight to the Texas Department of Licensing and Regulation (TDLR).
Meanwhile, Arizona has opted to bring couriers under regulatory oversight, joining New Jersey and New York, which have already implemented stringent rules. Despite these moves, only a limited number of states have explicitly addressed the issue of lottery couriers, leaving room for further regulatory developments across the country.
Source: SBCAmerica
