LOTTERY
generally successful in producing retail sales. Although Texas does not license or recognize the “private business activity” of lottery courier services, the Texas Lottery Commission noted that sales associated with these services reached over US$100 million during the first seven months of 2023. 12 Regulating courier services Lottery courier services appear to provide an additional revenue stream from a new audience without harming the ongoing lottery sales environment, making their adoption or integration into the system an attractive option. When attempting to integrate these services into their framework, either independently or as a result of various outside pressures, regulators must address several key elements of the legitimization to create a transparent and intelligible regulatory environment. Primarily, it will be necessary to determine what the specific goals for a courier service program are, and what action is necessary to create oversight of the services. Bringing stakeholders back to the table to fix loopholes or otherwise adjust the initial output is difficult, therefore it is imperative to begin with as detailed and comprehensive a plan as possible. Next, stakeholders must determine whether executive and/
or legislative action will be necessary to implement the plan. Key to this determination will be whether the courier service model or any of its vital parts are explicitly prohibited, such as whether payment options are restricted, the extent to which a ban on “online sales” expands, or whether purchasing as an agent is permissible. If the services are not explicitly barred, or if there are current licensing schemes in place that can accommodate them, then the lighter task of regulatory rulemaking or the state equivalent can be practical. Otherwise, overcoming legislative inertia will be necessary. At this stage, the scope and manner of the offerings permissible from the lottery courier services must also be developed. The services, like any industry, cannot be expected to self- regulate as they will operate in their best interests alone. Thus, establishing comprehensive procedures with clear definitions for key terms and roles within the system will be important. Moreover, the specific types of offerings that can be made by the couriers must also be defined. Can the couriers offer subscription services? What about lottery pools or multi- draw options? The courier services will be understandably aggressive in their offerings and activities and attempting to “fix” perceived loopholes later on will be seen as trying to claw back an established privilege. Next, it will be vital to instill a sense of legitimacy in the
12 Texas Lottery Commission 2022 Annual Report and 2023-2024 Comprehensive Business Plan. Available at https://www.texaslottery.com/ex- port/sites/lottery/Documents/TxLottery_AnnualReportBusinessPlan2024.pdf. Last accessed Sep. 11, 2023.
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IMGL MAGAZINE | OCTOBER 2023
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