Indianapolis – The Indiana legislature has given final approval to a bill that criminalizes operating lottery courier services without official authorization. Senate Bill 94 (SB 94) passed both the state Senate and House and now awaits Governor Eric Holcomb's signature.
The bill amends the Indiana Code to classify the operation of an unauthorized lottery courier service as a Class A misdemeanor. SB 94 garnered bipartisan support, passing the Senate by a vote of 44-5 and the House by 82-10. If Governor Holcomb signs the bill, it will take effect on July 1st.
According to the bill's provisions, unless explicitly authorized through future legislative amendments, neither the Indiana Lottery Commission nor the Indiana Gaming Commission will have the authority to operate or approve lottery courier services. Additionally, the bill mandates the Lottery Commission to establish rules regarding the bulk purchase of lottery products.
A similar bill, House Bill 1053 (HB 1053), has also passed both chambers and is awaiting final agreement. Both bills have been supported by numerous legislators, including Representatives Ethan Manning and Peggy Mayfield in the House, and Senators Ron Alting and Lonnie Randolph in the Senate.
While this bill does not establish a framework for authorizing or licensing lottery courier services, it is significant in setting clear legal boundaries for the practice unless the legislature revisits the issue. Particularly amid the nationwide expansion of digital lottery services, the possibility of future regulation remains open.
Earlier in this session, Representative Manning introduced House Bill 1432, which aimed to legalize online casino gaming and introduce online lotteries within Indiana. That bill also included provisions for establishing a licensing system for lottery courier services under the oversight of the Indiana Lottery Commission. However, this proposal was held up in committee due to concerns about the potential impact on existing retail casinos and lottery vendors.
Lottery courier services are businesses that purchase lottery tickets on behalf of online users for a fee and are already operating actively in several states. Major players include Jackpocket, Jackpot.com, Lotto.com, and TheLotter. These companies have rapidly expanded their businesses through partnerships with prominent sports organizations, and DraftKings even acquired Jackpocket for $750 million last year.
Indiana's legislative move can be interpreted as indicating the need for regulation in the rapidly growing lottery courier service market, and it remains to be seen whether similar discussions will follow in other states.
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