Lotto.com has taken legal action against the Texas Lottery Commission (TLC), alleging the agency abruptly reversed its position on online lottery couriers and implemented a ban without following proper procedures. The lawsuit, filed on April 24 in Travis County court by LTC Texas LLC—operator of Lotto.com—accuses the Commission of unlawful rulemaking and calls for the ban to be struck down.

Sweeping reversal of TLC’s position:

According to the filing, Lotto.com claims it operated with the full cooperation of the Commission since launching in Texas in 2022. The company says it was given permission to use TLC’s logos, employ state-approved technology, and even assist in brainstorming strategies to prevent jackpot manipulation. However, the Commission’s stance reportedly shifted in February 2025, when it suddenly banned courier services and limited how many lottery terminals retailers could operate.

“In return, the Commission changed rules on the fly and without due process,” the lawsuit states. The legal action comes as the Texas Lottery Commission faces broader scrutiny from state leaders. Governor Greg Abbott directed the Texas Rangers to investigate two major lottery wins, including a $95 million jackpot in April 2023 and another $83.5 million prize in February 2025. The latter was claimed using an online courier, prompting the Commission to allege that such services facilitate money laundering and counterfeit ticket sales.

That same day, the TLC announced its courier ban and threatened to revoke licenses from retailers partnering with courier platforms. The sudden change forced Jackpocket, another courier service operating in Texas, to suspend its local services.

Lotto.com’s lawsuit maintains that the Commission’s new policy, which includes limits on the number of terminals per retailer, renders its business model untenable. The company is not seeking damages but is asking the court to void the ban and block future similar regulations.

Couriers say they operated with state support:

Lotto.com argues the TLC’s actions contradict years of collaboration. The complaint cites statements from former Executive Directors Gary Grief and Ryan Mindell, who allegedly said the Commission lacked authority to regulate couriers. The suit contends that the new policies were implemented without the required public comment process and without legislative oversight, violating Texas administrative law.

According to Kera News, the Coalition of Texas Lottery Couriers echoed these concerns, stating: “This underscores the inconsistency and lack of accountability demonstrated by the agency when, in the face of political pressure, it abruptly decided in February that lottery couriers should be banned.”

The lawsuit also follows a wave of resignations at the Texas Lottery Commission. Executive Director Ryan Mindell stepped down just days before the lawsuit was filed, and Commissioner Clark Smith left his post in February. Sergio Ray, the Commission’s Chief Financial Officer, is now serving as acting deputy executive director and is named as a defendant in the lawsuit.

The Commission declined to comment on the ongoing litigation, and its next meeting is scheduled for April 29, where it may move to finalize the new rules.

Meanwhile, Senate Bill 28, which seeks to formally outlaw lottery couriers, has already passed the Texas Senate and awaits action in the House. If passed, it could cement the courier ban into law, regardless of the lawsuit’s outcome.

Since entering the Texas market, Lotto.com has offered customers a way to order official lottery tickets online, which are then purchased and delivered by couriers. If the restrictions take effect, Lotto.com says it will be forced to suspend operations in the state, potentially reshaping how Texans participate in lottery games.