Lottery couriers have been making a lot of positive waves of late.
But, not all are happy to see their progress.
One organization that has taken a hardline stance against couriers is the California Lottery.
California is not among the states with online lotteries, but that hasn’t stopped courier activity from taking place within its borders.
Mido Lotto is one of those services that says on its website that it operates in The Golden State.
Carolyn Becker, Deputy Director for Public Affairs and Communications at the California Lottery, made it clear to PlayiLottery that any courier offering sales of its games is not allowed to do so:
“They are not operating legally. Online ticket sales and courier services are illegal in California.”
Regulation the core issue with lottery courier services
There are five different couriers operating in the US.
What these couriers provide is online purchases of retail lottery tickets. In most cases, the sales are for lottery draw games.
Between the five, they operate in 21 different states and Washington, D.C.
Some states have a really open policy regarding couriers. Texas has all five services active, while New Jersey supplies four.
California is among the 21 states due to Mido Lotto, but that is not by its choice.
According to Becker, California’s opposition to couriers is based on a lack of regulatory oversight:
“The reason that they’re not legal is because they’re not regulated. There’s no regulatory structure around these kinds of services for lottery tickets. So, what we want our customers to know is that engaging in this practice in California is unsafe, because you’re exchanging money, hard-earned money, with a third party that’s not regulated, unlike our retailers at our brick-and-mortar locations.
“We have over 23,000 of those here in California. Those are all contractual partners of the lottery. There’s legal language in place to protect that relationship and those transactions. That’s simply not the case with digital services.”
California Lottery won’t honor courier-purchased tickets
California’s stance against couriers isn’t just talking tough.
The organization has made it clear that it will not honor any winning ticket that was purchased through a courier:
“If we have a player here in California who buys their ticket online, whether they know it’s legal or not, then we are legally prohibited from knowingly paying their prize, knowing that they bought it online. So, I would hate for that to be tested. It hasn’t happened at a massive prize level yet.”
On top of not paying out a prize to the consumer, the California Lottery is taking a hard stance against any retailers that work with couriers. Becker spelled out why:
“If we become aware, at the retail level, that there is courier activity taking place, we will have stern conversations, or educational conversations. Sometimes it is our retailers not knowing. So, if we find that they are knowingly engaging in courier sales, then there are a series of conversations that are had, and it could eventually lead to termination of our relationship with that particular retailer.”
Sales from California Lottery tickets support public schools in the state. Becker couldn’t confirm that courier sales meet that commitment.
According to the Mido Lotto website, it states it does contribute to each respective state’s funds:
“Mido Lotto complements existing State Lottery sales channels and incrementally increases Lottery revenues by engaging new individuals who may not be frequent Lottery players or those who might be more inclined to participate with the convenience of playing from your phone.”
AP, Google decisions on couriers concerning for California
Though California is firm in its approach, couriers have gained a lot of momentum in the US as of late.
Jackpot.com has recently been named the official lottery courier of the Associated Press. The partnership will see Jackpot.com supply results for the AP.
Becker is confused by that decision, as a courier is not an official lottery supplier:
“As to the winning numbers, I have no reason to believe that any of these courier services or companies would be getting those wrong. But frankly, they’re just not the official source. They’re not running the draws. They’re not a lottery entity in any way.”
On top of supplying results, customers of the Associated Press will have the opportunity to offer ticket purchasing services through their websites, where the courier’s services are available.
Another big splash for couriers is that Google announced it will be permitting ads from the companies.
Becker believes that is a slippery slope, as it could lead to misinformation for California Lottery players:
“We’re always concerned for players in California who may not realize that these practices are illegal. So, if they are advertising here, we just want to make sure our players are not being misled.”
Is California considering iLottery?
Buying lottery tickets online is illegal in California.
But, with couriers pressing the issue, could it lead to iLottery in the state?
Becker wouldn’t offer thoughts on that, simply noting it is a legal matter.
In order for an online lottery to come to California, it would require a bill to be passed by lawmakers.
There have been no bills proposed to legalize iLottery in the state, nor has there been much discussion to bring it forward in the future.
Photo by Stephen VanHorn via Shutterstock
Graphic from the California Lottery
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