World Lottery Association calls for strict regulation of couriers after bulk purchase scandals
The group also proposes a ban on mass ticket purchases.
Switzerland.- The World Lottery Association (WLA) has released a policy paper calling for robust oversight of online lottery couriers and a prohibition on mass ticket purchasing. The move follows a controversial incident affecting the Texas lottery in which a syndicate spent $25.8m to acquire all possible $1 ticket combinations to secure a $95m jackpot in 2023.
The report notes that lottery courier platforms like Lotto.com and DraftKings’ Jackpocket have grown in popularity in the US and other markets but that regulatory treatment remains inconsistent. The paper notes that there are several operating models used: partnering with licensed retailers, sharing ownership structures with retail outlets, making direct purchases from lottery operators and conducting in-person buys at retail locations
The WLA acknowledges that regulation of couriers is up to individual jurisdictions, but it has recommended a framework of best practices for any state opting to permit such services. Its key proposals include the use of legislative or rule-based regulation and a ban on bulk ticket purchases due to the risk posed to industry integrity.
It also proposes more scrutiny of retailers partnered with couriers via background checks along with player identity verification and geolocation. It suggests measures should be taken to avoid syndicate-driven mass purchase arrangements, which it warns jeopardises public trust and may facilitate money laundering, deceptive advertising, excessive pricing and evasion of gambling laws.
The WLA has also proposed that regulators limit terminal installations to reasonable levels and establish baseline sales volumes in order to flag unusual activity. The association also urged game designers to anticipate vulnerabilities in jackpot mechanics and track sales trends when payouts hit critical thresholds.
The Texas incident led to the dissolution of the Texas Lottery Commission and the resignation of executive director Ryan Mindell amid claims that the body provided additional terminals to four courier-linked storefronts to enable the scanning of tens of millions of QR-coded combinations. The state has now banned couriers, restricted online ticket sales, and imposed limits on bulk purchases.
The WLA notes that Indiana banned lottery couriers earlier this year, while legislators in Arizona voted in favor of regulated courier activity. Oregon is to deliberate on its policy at a hearing in August.
While the Texas case has gained most attention, the WLA also highlighted incidents in other jurisdictions. In Germany in 2022, the Punters Club, a syndicate from Australia created by David Walsh in partnership with Zelyko Romagajec, won a US$60m jackpot on a US$11m spend. In Switzerland in January of this year, a syndicate carried out a bulk purchase operation for all the combinations of the Joker game. It didn’t succeed in purchasing all combinations because Loterie Romande spotted the unusual purchase volume and blocked ticket sales, but it still won the jackpot after acquiring 65 per cent of combinations (payment has not yet been made).
The association also noted that a graduate group from Princeton University operating in the US under the name of Black Swan had made numerous known wins including: $1m in Washington DC in 2019, $5m in Missouri in 2020, $10m in North Carolina in 2022, and $2.6m in Maryland and an unsuccessful attempt for the $5m instant ticket jackpot in Oklahoma in 2024.
