The Texas Lottery is under scrutiny following two jackpot controversies that have raised questions about the system's integrity and operational practices.
So what’s the latest?
On Monday, Gov. Greg Abbott directed the Texas Rangers to investigate two major lottery drawings, including:
- A $95 million jackpot from April 2023, which someone won by purchasing nearly all 25.8 million possible number combinations, according to Abbott. The effort was orchestrated by a man from Malta and financed by a London-based betting company, according to reporting by the Houston Chronicle.
- The second is a $83.5 million jackpot won just last week. The winning ticket was bought through an online courier service at a location in northwest Austin, prompting concerns about the legality and transparency of such services.
“Texans must be able to trust in our state's lottery system and know that the lottery is conducted with integrity and lawfully,” Abbott said in a Monday statement. “Texans deserve a lottery that is fair and transparent for everyone.”
Texas Attorney General Ken Paxton announced on Wednesday that his office is also investigating the state’s lottery system. And the state’s lottery commission has announced a statewide investigation into all online lottery courier services currently operating in the state.
What, exactly, is an online lottery courier?
Online lottery couriers are third-party companies that allow customers to purchase lottery tickets through an app or website without having to visit a physical retailer. A scanned copy of the ticket is sent to the customer as proof of purchase. Couriers charge a fee for purchasing and managing tickets.
These companies currently operate without oversight in Texas, and only three out of nearly two dozen states that have such services regulate them, according to a 2024 report from the Texas House Committee on Licensing and Administrative Procedures.
What does this mean for Texas lottery players?
The Texas Lottery Commission (TLC) on Monday announced plans to prohibit lottery courier services, arguing that they violate state laws by allowing money laundering and the sale of fake lotto tickets. According to TLC executive director Ryan Mindell, the commission will propose the policy at an open meeting on March 4. Mindell said they’re expecting the policy to go into effect in April. If approved, any retailer working in tandem with a courier service would have their lottery ticket sales license revoked.
“We are taking decisive steps to uphold the public’s trust and ensure that the lottery operates as intended – in a fair and secure manner,” Mindell said in a statement.
Amid the growing turmoil, Texas Lottery Commissioner Clark Smith resigned from his position on Friday, about a week after he and several other lottery officials were grilled at a state Senate committee hearing over couriers.
In Austin, state lawmakers have already proposed several bills seeking to prohibit these courier services in Texas – including one that aims to abolish the state lottery completely.
Jackpocket, one of the country’s major online lottery courier services, has already suspended its operations in the state. A spokesperson for Lotto.com, another lottery courier service that operates in Texas, expressed disappointment in the TLC’s decision and, in a statement to CNN, said that the company was evaluating its options.
The Texas Newsroom is a public radio journalism collaboration that includes NPR, KERA in North Texas, Houston Public Media, KUT in Austin, Texas Public Radio in San Antonio and other stations across the state.