Several proposed bills in the state of Indiana would make running and operating a lottery courier service effectively illegal are on the verge of being approved. SB 94 has been able to go through both chambers of the legislature and a modified version has been sent to the Senate for final approval, and House Bill 1053 is also on the way.

The Indiana General Assembly is poised to tighten regulations around the state's lottery operations with two bills that would criminalize unauthorized lottery courier services nearing final passage.

Senate Bill 94, which seeks to amend the Indiana Code, has cleared both the Senate and the House with overwhelming support - passing 44 - 5 in the Senate and 82 - 10 in the House. The amended version has now returned to the Senate for concurrence, the final step before potential enactment.

The specifics of Senate Bill 94 and House Bill 1053

If signed into law, SB 94 would establish that operating a lottery courier service without the express authorization of the Indiana Lottery Commission constitutes a Class A misdemeanor. Additionally, the bill makes clear that neither the Indiana Lottery nor the Indiana Gaming Commission has the right to authorize such services unless specifically granted that power by future legislation.

A companion measure, House Bill 1053, originated in the House and mirrors the language found in SB 94 regarding lottery couriers. It too has passed both chambers and is awaiting final concurrence on amendments. The two bills share key legislative sponsors: Reps. Ethan Manning and Peggy Mayfield in the House, and Sens. Ron Alting and Lonnie Randolph in the Senate.

Increased legislative scrutiny

These legislative efforts come amid growing national attention on lottery courier services - third-party companies that buy lottery tickets on behalf of online consumers, often for a service fee. While the current Indiana bills do not permit any party to operate or license such services, they also leave the door open for potential future regulation, should lawmakers decide to revisit the issue.

Earlier this year, Rep. Manning sponsored House Bill 1432, a broader measure that sought to legalize online casino gaming and online lottery sales in Indiana. That proposal would have allowed the Indiana Lottery Commission to oversee digital lottery expansion, including the regulation and licensing of courier services. However, HB 1432 stalled in committee in February, amid concerns about potential revenue losses for retail casinos and small lottery retailers.

Despite the setback, lawmakers and industry observers believe the issue could resurface in future legislative sessions, especially as the use of digital platforms to access lottery games continues to grow nationwide.

The courier trend across the US

Lottery courier services like Jackpocket, Jackpot.com, Lotto.com, and TheLotter are already active in several US states. Jackpocket, in particular, has gained national visibility after its acquisition by DraftKings last year. Jackpot.com's footprint, on the other hand, includes major commercial partnerships, such as becoming7-Eleven's official lottery partner and the official results provider for the Associated Press, as well as marketing deals with Major League Baseball teams like the New York Yankees and the Cleveland Guardians.

However, the growth of the courier model has not been without friction. Jackpocket withdrew from New Mexico this year following concerns raised by the state's Attorney General that its operations could violate tribal gaming compacts, despite having a memorandum of understanding with the New Mexico Lottery.

Further discord in the lottery courier market

Neighboring Texas has also seen movement on this front. A bill introduced in the Texas House seeks to create a regulatory framework for lottery courier services, citing the widespread use of digital apps by Texans to order lottery tickets. That bill has received backing from several courier providers, even as the Texas Lottery Commission maintains its position that such services are illegal under current law.

As Indiana moves forward with legislation that would criminalize unauthorized courier operations, the state joins a growing national conversation about how best to adapt lottery regulation to the digital age. Whether lawmakers choose to revisit the idea of licensed couriers or online lottery offerings in future sessions remains to be seen - but for now, the message from the Statehouse is clear: unapproved lottery courier activity will not be tolerated.