Indiana closer to criminalize unauthorized lottery courier services

Indiana lawmakers have approved legislation that would make it a criminal offense to operate a lottery courier service in the state without official authorization. Senate Bill 94, which has passed both chambers of the Indiana General Assembly, has made it to Governor Mike Braun’s desk.

The bill proposes to amend the Indiana Code by classifying the unauthorized operation of a lottery courier service as a Class A misdemeanor. SB 94 received wide bipartisan support, clearing the Senate with a 44-5 vote and the House by an 82-10 margin. If signed into law, SB 94 will take effect on July 1.

Under the provisions of the bill, neither the Indiana Lottery Commission nor the Indiana Gaming Commission would have the authority to operate or authorize such services unless explicitly granted by future legislation. The bill also mandates the Lottery Commission to establish rules for the bulk purchase of lottery products.

A similar measure, House Bill 1053, which contains identical language regarding courier services, has also cleared both chambers and awaits final concurrence. Both bills are backed by a coalition of lawmakers, including Rep. Ethan Manning and Rep. Peggy Mayfield in the House, and Sen. Ron Alting and Sen. Lonnie Randolph in the Senate.

While the current legislation stops short of creating a framework to authorize or license courier services, it effectively sets a legal boundary around the practice unless lawmakers decide to revisit the issue. The door remains open to potential regulation, particularly as digital lottery services gain traction across the country.

Earlier in the session, Rep. Manning introduced House Bill 1432, which sought to legalize online casino gaming and establish an online lottery in Indiana. That bill also proposed regulating courier services through a licensing system overseen by the Indiana Lottery Commission. However, the proposal stalled in committee amid concerns about its impact on existing retail casinos and lottery retailers.

Lottery courier services, businesses that buy lottery tickets on behalf of online users for a fee, are already active in several states. Notable players include Jackpocket, Jackpot.com, Lotto.com, and TheLotter. 

These companies have entered into high-profile partnerships and have rapidly expanded operations. DraftKings acquired Jackpocket last year in a $750 million deal.