Can lottery ticket courier services like Jackpocket legally operate in Mississippi?

Plain-English summary

Lottery ticket courier services (Jackpocket and similar businesses) work by letting customers use an app or website to "reserve" lottery tickets. The courier service then physically buys the tickets from licensed retailers and holds them. If a ticket wins, the customer claims the prize; if the prize is above an IRS threshold, the courier ships the physical ticket back to the customer for prize claiming.

Senator Jeremy England asked the AG to assess whether such couriers can operate in Mississippi under the Alyce G. Clarke Mississippi Lottery Law. The AG's answer was a clean no, on multiple grounds.

Ground 1: Only certified retailers can sell. § 27-115-65(1) prohibits any person other than a duly certified lottery retailer from selling lottery tickets. A courier reserving a ticket and providing it to a customer is functionally selling, but the courier is not a certified retailer.

Ground 2: The mobile-device prohibition. § 27-115-17(2)(d) is unusually explicit: the lottery cannot permit any ticket to be "purchased, sold or played by any method involving (i) a video lottery terminal or (ii) by any personal computer, tablet, smartphone, mobile device or other similar equipment or type of device." That language was written precisely to forbid the courier model and online sales.

Ground 3: In-person verification and signage. Even setting aside the mobile-device prohibition, courier sales can't comply with statutory point-of-sale requirements. § 27-115-73 requires age verification (no sales to anyone under 21) with identification shown at the retail location. § 27-115-67 requires signage at each point of entry into areas where lottery tickets are sold, identifying problem-gambling resources. A courier app with an off-site purchaser can't meet these requirements.

The AG treated the second and third sub-questions (about courier-as-vendor and bulk-sales prohibitions) as moot because the threshold answer is no. As to whether couriers would qualify as "vendors" under § 27-115-5(i) requiring a separate Lottery Corporation contract, the AG said that's a determination for the Lottery Corporation and the Lottery Board, not one the AG can answer by official opinion.

What this means for you

If you are a lottery courier business

The opinion holds that the courier model described in the request does not comply with the Lottery Law. It rests on three statutory grounds: only a duly certified retailer may sell tickets (§ 27-115-65(1)), the law bars sales by any "personal computer, tablet, smartphone, mobile device or other similar equipment" (§ 27-115-17(2)(d)), and the in-person age-verification and signage requirements (§§ 27-115-73, 27-115-67) cannot be met by an off-site app sale.

If you are a Mississippi lottery retailer

The opinion notes that retailer contracts are not transferable or assignable, and a retailer cannot "contract with any person for lottery goods or services except with the approval of the board" (§ 27-115-57(1)). It also holds that only certified retailers may sell tickets, and only at the contracted location (§ 27-115-65(3)).

If you are a state legislator

The opinion is a reading of the Lottery Law as it stood in February 2024. It states there is "currently no provision in the Lottery Law allowing for the online 'reservation' of lottery tickets" and that couriers are not authorized. The opinion does not propose statutory changes; it describes what the current text does and does not permit.

If you are at the Mississippi Lottery Corporation or Lottery Board

The opinion holds the Board's rulemaking authority over "[t]he methods to be used in selling tickets" is expressly limited by the proviso in § 27-115-17(2)(d) barring sales by computer or mobile device. The opinion leaves the separate "vendor" contracting question to the Corporation and the Board.

If you are a gaming attorney advising clients

The opinion reads the mobile-device prohibition in § 27-115-17(2)(d) as an explicit bar on both direct online sales and the courier-as-intermediary model. It concludes that under current law the courier model is not authorized; it does not opine on any alternative arrangement.

Common questions

Q: How does a lottery ticket courier work?
A: A customer uses the courier's app or website to "reserve" tickets and submit payment. The courier sends an employee to a physical lottery retailer, buys those exact tickets, and stores the physical ticket. The customer is matched to specific tickets via serial number. If a ticket wins, the courier handles claiming, with physical ticket transfer when required by IRS rules.

Q: Could the Lottery Board adopt rules allowing couriers?
A: Per the opinion, no. The Board has rulemaking authority for "[t]he methods to be used in selling tickets," but that authority is expressly qualified by the proviso in § 27-115-17(2)(d) barring sale by mobile device. A regulation cannot override the statute.

Q: What is the Alyce G. Clarke Mississippi Lottery Law?
A: It's the official name of the statute creating the Mississippi Lottery, named for Alyce G. Clarke, a long-serving Mississippi state representative who advocated for the lottery's establishment. Codified at Miss. Code Ann. §§ 27-115-1 et seq.

Q: How does this opinion treat the bulk-sales prohibition (§ 27-115-37)?
A: The opinion notes that § 27-115-37 prohibits bulk sales of lottery tickets for investment purposes but doesn't reach a separate holding because the threshold answer to question 1 makes the issue moot. If couriers were otherwise legal, bulk-purchase patterns might still create issues under § 27-115-37.

Background and statutory framework

The Alyce G. Clarke Mississippi Lottery Law (codified at Miss. Code Ann. §§ 27-115-1 et seq.) creates a state lottery administered by the Mississippi Lottery Corporation, with rulemaking by the Lottery Corporation Board of Directors (§ 27-115-7(1)).

Key features:

• Retailer-only sales (§ 27-115-65(1)): Only "duly certified" lottery retailers can sell tickets. The contracts with retailers are non-transferable and non-assignable (§ 27-115-57(1)).
• No mobile-device sales (§ 27-115-17(2)(d)): Tickets cannot be sold through "any personal computer, tablet, smartphone, mobile device or other similar equipment or type of device." Video lottery terminals are also banned.
• Age verification (§ 27-115-73): No sales to anyone under 21. ID must be shown at the retail location.
• Problem-gambling signage (§ 27-115-67): Signs at each point of entry into ticket-sale areas must inform patrons of problem-gambling resources.
• No bulk sales (§ 27-115-37): Bulk sales of lottery tickets for investment purposes are prohibited.

The statutory architecture is built around in-person, retailer-controlled sales at brick-and-mortar locations. Couriers don't fit anywhere in that architecture.

The AG's reasoning walks through the statutory requirements, observes that the courier model cannot satisfy them, and concludes that current law does not permit couriers. The opinion defers to the Lottery Corporation and Lottery Board on the specific "vendor" contracting question but is firm on the threshold legal status: no.

Citations and references

Statutes (Alyce G. Clarke Mississippi Lottery Law):

• Miss. Code Ann. §§ 27-115-1 et seq. (Lottery Law generally)
• Miss. Code Ann. § 27-115-5(g) (definition of "retailer")
• Miss. Code Ann. § 27-115-5(i) (definition of "vendor")
• Miss. Code Ann. § 27-115-7(1) (administration by Mississippi Lottery Corporation)
• Miss. Code Ann. § 27-115-17(1) (Lottery Board authority)
• Miss. Code Ann. § 27-115-17(2)(d) (prohibition on mobile-device and computer-based sales)
• Miss. Code Ann. § 27-115-37 (prohibition on bulk sales for investment)
• Miss. Code Ann. § 27-115-55 (vendor contracts)
• Miss. Code Ann. § 27-115-57(1) (retailer contracts non-transferable; Board approval needed for retailer service contracts)
• Miss. Code Ann. § 27-115-65(1) (only certified retailers may sell; price cannot be altered without authorization)
• Miss. Code Ann. § 27-115-65(3) (retailer may only sell at contracted location)
• Miss. Code Ann. § 27-115-67 (problem-gambling signage requirements)
• Miss. Code Ann. § 27-115-73 (age verification, no sales under 21)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2024/02/J.England-February-8-2024-Lottery-Ticket-Couriers.pdf

Original opinion text

February 8, 2024

The Honorable Jeremy England
Senator, District 51
Post Office Box 6363
Vancleave, Mississippi 39565

Re: Lottery Ticket Couriers

Dear Senator England:

The Office of the Attorney General has received your request for an official opinion.

Background

According to your request, lottery ticket couriers allow customers to securely reserve official state lottery tickets through a computer, tablet, or smartphone. Lottery ticket couriers then purchase tickets from physical retailer locations. The lottery ticket couriers receive payment to reimburse the courier for the cost of scanning, storing, and delivering the lottery ticket to the customer. The lottery ticket couriers retain the physical ticket until it is determined to be a winning or non-winning ticket. All winning tickets with prizes above the relevant IRS threshold must be sent back to the customer for claiming.

Questions Presented

1. May a lottery courier service operate legally in Mississippi under the Alyce G. Clarke Mississippi Lottery Law ("Lottery Law")?

2. Are lottery couriers, using the model set forth herein, exempt from the definition of "lottery vendors" as used in Mississippi Code Annotated Sections 27-115-5 and 27-115-55?

3. Do the provisions prohibiting the bulk sales of lottery tickets for investment purposes as outlined in Section 27-115-37 create a conflict with lottery courier services operating as described in this request?

4. Does the restriction on the lottery's ability to adapt casino games to personal or mobile devices found in Section 27-115-17(1) and Section 27-115-17(2)(d) create any bar to customers using a personal computer, tablet, smartphone, mobile device or other similar equipment or type of device to direct a third party, such as a lottery courier, to obtain tickets from a lottery retailer on behalf of the customer?

Brief Response

1. The lottery courier system as described in your request does not comply with the requirements of the Lottery Law. There is currently no provision in the Lottery Law allowing for the online "reservation" of lottery tickets as you describe in your request. The Lottery Law prohibits any person other than a duly certified lottery retailer from selling lottery tickets to the public. Further, the sale of lottery tickets using a computer, tablet, or smartphone would violate the prohibition against selling lottery tickets by any method involving "any personal computer, tablet, smartphone, mobile device or other similar equipment or type of device" in Section 27-115-17(2)(d) and also would not comport with the age verification and signage requirements in Sections 27-115-73 and 27-115-67.

2. Our response to your first question renders this question moot. However, we note that whether a type of lottery business would be required to have a contract with the Lottery Corporation to operate in Mississippi, thus qualifying as a vendor as defined in Section 27-115-5(i), is ultimately a determination to be made by the Lottery Corporation and/or the Lottery Board and is a question that we cannot answer by official opinion.

3. Our response to your first question renders this question moot.

4. The Lottery Law does not contemplate or authorize using a personal computer, tablet, smartphone, mobile device or other similar equipment or type of device to direct a third-party company to obtain or reserve lottery tickets. Only duly certified retailers are allowed to sell lottery tickets to the public and they must do so in accordance with the Lottery Law, which prohibits the sale of lottery tickets by any method involving "any personal computer, tablet, smartphone, mobile device or other similar equipment or type of device." Miss. Code Ann. § 27-115-17(2)(d).

Applicable Law and Discussion

The Lottery Law, Sections 27-115-1, et seq., creates a state lottery, which is administered by the Mississippi Lottery Corporation ("Lottery Corporation"). Miss. Code Ann. § 27-115-7(1). The Mississippi Lottery Corporation Board of Directors ("Lottery Board") has the authority to adopt administrative rules and regulations governing the conduct of lottery games and operations, including:

[t]he methods to be used in selling tickets for lottery games; provided, however, the corporation shall not permit any lottery game to be played or ticket to be purchased, sold or played by any method involving (i) a video lottery terminal or (ii) by any personal computer, tablet, smartphone, mobile device or other similar equipment or type of device.

Miss. Code Ann. § 27-115-17(2)(d). The Lottery Law defines a "retailer" as "any person with whom the corporation has contracted to sell lottery tickets to the public" and prohibits any person other than "a duly certified lottery retailer" from selling lottery tickets. Miss. Code Ann. §§ 27-115-5(g) and 27-115-65(1).

The Lottery Law does not provide for online ticket reservations or resale to the public; it only contemplates lottery tickets being sold directly to customers at a physical retail location with requirements imposed on those physical locations. For example, lottery retailers are prohibited from selling lottery tickets to anyone under age 21, and identification with proof of age must be shown at the retail location. Miss. Code Ann. § 27-115-73. Additionally, lottery retailers are required to post signs on "licensed premises at each point of entry into areas where lottery tickets are sold to inform patrons of a toll-free telephone number of any state or national organization that provides information and referral services regarding compulsive or problem gambling." Miss. Code Ann. § 27-115-67. Lottery retailers are only allowed to sell lottery tickets at the location listed in the contract with the Lottery Board. Miss. Code Ann. § 27-115-65(3). Moreover, contracts awarded to lottery retailers are not transferable or assignable, nor can a lottery retailer "contract with any person for lottery goods or services except with the approval of the board." Miss. Code Ann. § 27-115-57(1). The Lottery Law also prohibits any person from selling a lottery ticket "at a price other than established by the corporation, unless authorized in writing by the president." Miss. Code Ann. § 27-115-65(1). Furthermore, Section 27-115-37 prohibits the bulk sale of lottery tickets.

There is currently nothing in the Lottery Law that authorizes the use of lottery couriers in Mississippi. Lottery couriers as described in your request do not qualify as lottery retailers under the Lottery Law and, thus, are not authorized to sell lottery tickets to the public. Further, the sale of lottery tickets by either a lottery retailer or a lottery courier using a computer, tablet, or smartphone would violate the prohibition against selling lottery tickets by any method involving a "any personal computer, tablet, smartphone, mobile device or other similar equipment or type of device" in Section 27-115-17(2)(d). The sale of lottery tickets through a lottery courier as you describe would not comport with the requirements for in-person sales, including the age verification and signage requirements in Sections 27-115-73 and 27-115-67.

If this office may be of any further assistance to you, please do not hesitate to contact us.

Sincerely,

LYNN FITCH, ATTORNEY GENERAL

By: /s/ Beebe Garrard
Beebe Garrard
Special Assistant Attorney General