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Lottery courier bill divides committee: proponents say digital couriers boost sales; retailers warn of cannibalization
Summary
Delegate Eric Ebersole and courier representatives backed legislation to permit lottery courier services (apps that order state lottery tickets and hold paper tickets), citing increased sales in other jurisdictions; convenience-store and beverage-retailer groups opposed, saying couriers threaten brick-and-mortar agents and ancillary sales.
Delegate Eric Ebersole presented House Bill 539 on Feb. 6, describing courier platforms that accept online orders for official state lottery tickets and then buy paper tickets at licensed retail outlets on the patron's behalf. Proponents said such services operate in 19 U.S. jurisdictions and increase draw-game sales without cannibalizing existing retailers.
Proponents including representatives from Jackpot.com and other courier services said the platforms can attract younger customers and increase overall lottery revenue, citing growth figures from jurisdictions where couriers operate. Courier witnesses said they typically affiliate with a licensed retail location to fulfill ticket purchases and often seek retailer licensing for the fulfillment site.
Retailers and trade groups including the Maryland Retailers Alliance, convenience-store operators and beverage retailers testified in opposition. They said courier companies often set up exclusive arrangements with large chains that concentrate sales and reduce foot traffic to independent agents. Retailers said lottery sales are a meaningful share of convenience-store revenue and that most lottery purchases are bundled with other in-store purchases; they warned that digital couriers could erode ancillary sales and not replace them.
Committee members asked about operational details: whether courier platforms can obtain retail licenses (witnesses said they could and often do), how commissions are handled, and whether courier activity has been shown to cannibalize sales. Courier witnesses said data from Texas, New Jersey, New York and Arkansas show increases in draw-game sales following courier adoption and said they do not displace existing retailers. Retail witnesses urged protections: require couriers to buy from existing agents, ban retailer exclusivity agreements and protect small retailers from being undercut.
No committee vote was recorded at the hearing. Sponsors and courier representatives urged a favorable report; retailer groups requested an unfavorable report or statutory protections if the committee moves forward.
