AUSTIN, Texas — Texas Lottery Commissioner Clark Smith has resigned amid scrutiny over the department and a push by state lawmakers to ban the use of lottery courier services. 

What You Need To Know

  • Smith’s resignation follows some controversial jackpot wins in recent years that invovled courier services

  • A Houston Chronicle investigation found that a single player purchased every possible number combination to win a $95 million Lotto Texas jackpot in April 2023. According to the Chronicle’s reporting, courier companies helped stack the odds by processing tens of millions of lottery tickets in 72 hours

  • The Texas Legislature is considering multiple proposals to either regulate or outright ban lottery courier services in the state

  • The Texas Lottery Commission announced on Monday that it is moving to ban lottery courier services in the state

A spokesperson confirmed to The Texas Tribune and other media outlets that the resignation was effective on Friday. 

Smith was appointed to the commission in 2023, and his term would have expired on Feb. 1, 2029. The commission comprises four commissioners and a chair. 

Smith’s resignation follows some controversial jackpot wins in recent years. 

A Houston Chronicle investigation found that a single player purchased every possible number combination to win a $95 million Lotto Texas jackpot in April 2023. According to the Chronicle’s reporting, courier companies helped stack the odds by processing tens of millions of lottery tickets in 72 hours. 

Fast forward to just last week and yet another courier service was in the spotlight after it purchased the winning Lotto Texas ticket for a $83.5 million jackpot–the fifth largest jackpot in the game’s history. 

The winning ticket was purchased from Winner Corner TX LLC in North Austin, and it was purchased by a courier service named Jackpocket, which happened to also be affiliated with the store. This news prompted Lt. Gov. Dan Patrick to visit Winners Corner to investigate the matter, and he has since called for taking a deeper look at lottery courier services. 

That deeper look may come sooner rather than later. The Texas Legislature is currently in session, and a bill was filed in the House that would regulate lottery couriers. House Bill 3201 was filed by Rep. John Bucy III, D-Austin, and it would require lottery couriers to register with the Texas Lottery Commission, establish a daily limit on the number of orders a person can place and other regulatory standards. 

“A lot has changed since voters approved the Texas Lottery in 1991. Today, millions of Texans use digital apps to order Texas Lottery tickets, a technological convenience that has far outpaced the original legislation,” said Bucy in a statement. “It’s time we implement enforceable standards and safeguards to protect Texas consumers and the integrity of the Texas Lottery.” 

Jackpocket, which is owned by DraftKings, and other lottery couriers in the state expressed their support for Bucy’s bill in a statement. 

“While our companies have and will continue to abide by the standards proposed by HB 3201, we firmly believe that any courier that violates these requirements should be held to account,” the Coalition of Texas Lottery Couriers said in a news release. “Issues such as facilitating bulk purchases, the international distribution of Texas Lottery games or underage orders cannot be tolerated. The public’s trust and confidence in courier operations and the Texas Lottery must be honored, and we look forward to working with Rep. Bucy to advance this bill.”

Meanwhile, the Texas Senate held a hearing on Monday to discuss a bill filed last week that would make it illegal to purchase a lottery ticket by phone or through a mobile application, effectively banning couriers in the state. 

And it seems the Texas Lottery Commission will also move to ban courier services. Ryan Mindell, the commission’s executive director, announced on Monday that lottery ticket courier services are “not allowed under Texas law,” according to a news release. Mindell said the commission will “revoke the license of a retailer that works with or assists a courier service and we are moving to prohibit courier services in Texas to ensure all ticket sales comply with state law and agency regulation as well as to maintain public trust.”

The rule amendments will be proposed formally at a meeting on Tuesday, March 4, with the intent of adopting the changes in April. According to the release, the policy change is effective immediately. 

In a statement responding to the Texas Lottery Commission's policy statement, the Coalition of Texas Lottery Couriers said the rule change "is abrupt, disappointing and unnecessary."

“Lottery couriers have been legally and responsibly operating in Texas since 2019, while always maintaining a transparent and professional relationship with the Texas Lottery Commission.  Throughout this process, the TLC has claimed to have no regulatory authority over courier activities, despite couriers’ persistent requests to be regulated, just as we are in other states," the statement reads. "Today’s decision by the TLC to ban lottery courier services is abrupt, disappointing and unnecessary. We will continue to encourage a regulatory solution, such as the one proposed by HB 3201, which allows our millions of Texas customers to continue to safely and conveniently order lottery tickets using our services.”