Oregon Lottery proposes regulation of courier sales, banning out-of-state ticket purchases

The Oregon Lottery has put forward a revised proposal seeking to regulate how lottery retailers interact with courier services and to explicitly prohibit the sale of lottery tickets to customers outside state lines. The proposal, submitted on July 14, comes amid growing state concern over unregulated courier activity and its implications for the security and integrity of lottery operations.

In the absence of current regulation, courier services continue to operate in Oregon in what the Lottery describes as a grey area. The new proposal aims to change that by introducing specific requirements for retailers who work with couriers and by banning sales to out-of-state and international customers.

The Lottery is aware of a handful of courier services operating in Oregon, the document stated, adding that seven retailers currently work with these services. However, the Lottery also acknowledged that it lacks a full picture of the scale of these operations.

The new rules would require retailers and couriers to maintain transaction records and ensure secure storage of tickets. These practices are already common in jurisdictions where regulation is in place. Reputable courier services may already meet the requirements because they are required in other lottery jurisdictions in which the couriers operate, said the Lottery.

The proposal will be open to public comment during a hearing scheduled for August 20.

Oregon’s move follows mounting national and international pressure. According to the Lottery, feedback from foreign regulators, domestic lotteries, and national gaming organizations prompted a reassessment of the state’s approach. 

Citing actions taken in other states, the Oregon Lottery referenced California, Texas, and Indiana as key examples. In April, the Texas Lottery Commission voted to ban courier operations following fraud allegations involving mass purchases of number combinations that led to a $95 million win.

That episode ultimately resulted in the dissolution of the Texas Lottery Commission, with regulatory oversight being transferred to the Texas Department of Licensing and Regulation.

California’s Attorney General issued an opinion in 2022 against courier activity, and Indiana followed with an outright ban earlier this year. Meanwhile, Arizona and states like Connecticut have opened discussions on regulation, with Arizona voting to bring couriers under formal oversight in April.

Only a limited number of states, including New York and New Jersey, have officially regulated courier services under strict conditions.