Texas Lottery winnings under investigation
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Lawmakers and state authorities are scrutinizing the Texas Lottery after online ticketing systems may have given an unfair advantage to winners of two multimillion-dollar jackpots.
Why it matters: Attorney General Ken Paxton on Wednesday opened an investigation into two "suspicious and possibly unlawful" lotto wins by third-party courier services.
- Gov. Greg Abbott this week also directed the Texas Rangers to investigate the two jackpots, saying Texans should have a fair lottery system.
Catch up quick: In April 2023, a group of people with ties to a gaming entrepreneur in Malta and a London betting company won a $95 million jackpot by purchasing nearly every possible number combination at a store in Colleyville.
- Earlier this month, a lotto ticket purchased in Austin through a courier company won an $83.5 million drawing.
What they're saying: "Texas citizens deserve far better than bad actors getting rich off of a lottery system that is open to exploitation," Paxton said in a press release. "We will hold anyone who engages in illegal activity accountable."
State of play: Several bills have been filed in the Texas Legislature to tighten regulations for the lottery system.
- Lawmakers say unregulated courier companies game the lottery. Customers pay for a lottery ticket online for a fee, and the courier service buys the ticket and sends the customer a scanned copy of it.
- The system may be allowing out-of-state residents and minors to buy tickets illegally, lawmakers say.
Between the lines: Texas Lottery commissioner Clark Smith, appointed by Abbott, resigned last week amid the scrutiny by lawmakers.
- The Texas Lottery Commission has since stated that lottery ticket courier services are illegal and that it will consider a proposal to formally update its rules at a meeting March 4, followed by a 30-day comment period and a final vote in April.
The other side: The Coalition of Texas Lottery Couriers — representing the mobile app Jackpocket, Jackpot.com and Lotto.com — said in a statement that couriers "have been legally and responsibly operating in Texas since 2019."
- "TLC has claimed to have no regulatory authority over courier activities, despite couriers' persistent requests to be regulated. … We will continue to encourage a regulatory solution."
State Rep. John Bucy, an Austin Democrat who filed a bill this year seeking to regulate couriers, said he was "dismayed and disappointed" at the commission's proposal and requested they postpone next week's vote.
- "The commission abruptly decided [this week] that it has the power to not only regulate, but to also outlaw lottery courier operations — a complete contradiction of its own actions, testimony, and requests," Bucy said in a letter Tuesday to the commission that was shared with Axios.