Texas Lottery Couriers Criticized as Unlawful by Kickapoo Tribe
In a recent development, the Kickapoo Traditional Tribe of Texas has expressed concerns about the proliferation of online lottery services in the state, contrary to reports by The Texas Scorecard suggesting that they had threatened to expand class III gaming unless the legislature enforced a prohibition on lottery courier services.
Jason C. Nelson, the tribe's general counsel, penned a letter to the Senate State Affairs committee last month, outlining his concerns about the questionable legal status of lottery courier companies in Texas. He described each purchase of a lottery ticket through these services as a bet and each lottery drawing as the outcome of that bet, arguing that they amount to unlawful gambling expansion.
The concerns of the Kickapoo Tribe stem from a syndicate's purchase of every single possible combination (25.8 million tickets) for the April 22, 2023, Texas Lottery draw. Remarkably, this syndicate won the jackpot ($95 million before taxes) and all secondary prizes in the draw.
Lottery couriers claim their business practices fall into a legal loophole, stating they merely provide a delivery service for lottery tickets. However, the Kickapoo Tribe argues that these services enable unlawful internet gaming, creating an online user experience simulating real-time games of chance.
It is important to note that the sale of lottery tickets by telephone and online gambling are currently prohibited in Texas. The Texas Legislature is expected to tackle this issue during the 2025 session, with state legislative authorities planning to implement stricter regulations and enhanced enforcement measures targeting lottery courier services to combat illegal gambling activities and protect the financial interests of the Kickapoo Traditional Tribe of Texas.
The Kickapoo Tribe operates the Lucky Eagle Casino Hotel on its reservation in Eagle Pass on the Rio Grande, offering class II gaming, including electronic bingo machines and poker. Under the Indian Gaming Regulatory Act (IGRA), tribes can offer class II gaming on their lands if it is offered legally in some form elsewhere in the state, while class III gaming requires a negotiation and approval process with the state and federal government.
Despite the ongoing debate, the Kickapoo Tribe has not expressed a plan for class III gaming expansion, which includes Las Vegas-style slots and table games. The Texas Lottery normally sells 1-2 million tickets per week, indicating a significant increase in sales if lottery courier services were to be legalised.
The issue of lottery couriers has been a hot topic in Texas, with the proliferation of these services raising questions about the state's gambling laws and the potential for illegal activities. As the 2025 session approaches, the Kickapoo Tribe's concerns and Nelson's letter serve as a reminder of the importance of addressing this issue and ensuring the integrity of Texas' gambling industry.
