Lottery courier Lotto.com has received a favorable early court decision that will allow it to continue operations in Texas for the time being. A state judge granted the courier’s request for a temporary restraining order (TRO) against the Texas Lottery Commission (TLC), which had ordered Lotto.com to shut down.
The TLC issued a ban on retailers working with couriers on Feb. 25 and made it official in a commission board vote on April 29. Prior to that official vote, Lotto.com accused the TLC of confiscating terminals that the courier used as part of their retail business to supply lottery tickets to their online customers.
Last Friday, a State District Judge Sherine Thomas issued the restraining order to the lottery, preventing it from enforcing the new policies as the lawsuit plays out.
A hearing on the TRO is scheduled for May 27.
Judge rules that Lotto.com can win case
On Feb. 24, the TLC announced new policies that would revoke the license of any retailer known to be working with a courier as well as issuing heavy fines. The commission then voted unanimously to pass these new policies on April 29.
While most couriers immediately began ceasing operations in Texas with the Feb. 24 announcement, Lotto.com continued to offer the online sale of retail lottery tickets in the state.
It then filed the lawsuit two weeks ago against the TLC and Acting Executive Director Sergio Rey. The courier alleged that the TLC had violated tits 30-day rule change requirement when it first announced the ban. Lotto.com also alleged that on Feb. 24, the TLC began confiscating lottery terminals from multiple couriers.
In her order, Thomas stated that the TLC may not “seize or repossesses terminals” belonging to Lotto.com, referenced as LTC Texas in the lawsuit. The order also bars the TLC from any other sort of enforcement action while the suit plays out.
Thomas indicated in her ruling that Lotto.com’s case is likely to succeed on the merits, though this shouldn’t be viewed as a final judgement. Courts can only issue preliminary injunctions when they believe the plaintiff is likely to prevail and would suffer irreparable harm in the interim without the injunction.
Lotto.com currently takes orders from Texas Lottery customers for draw games and select scratch tickets through its app and website. Under the lottery courier model, the courier isn’t technically selling the tickets itself, but rather buying them on players’ behalf from a conventional retailer with which it has a partnership.
Despite support from the Coalition of Texas Lottery Couriers over the lawsuit, couriers Jackpocket and Jackpot.com have not resumed sales in Texas.
