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On Monday, the Texas Lottery recorded its fifth-biggest ever payout, but the win has been overshadowed by serious controversy. A new bill aimed at banning online and in-app sales of lottery tickets in the state has been introduced in response to growing concerns over the integrity of the lottery system.
Following the sale of the $83.5 million winning ticket in Austin, Lt. Gov. Dan Patrick decided to visit the store on Tuesday(Feb 18). The store, Winners Corner TX, is reportedly owned by Jackpocket, an online lottery courier that was acquired by DraftKings last year.
In a video posted on X, Patrick revealed that behind the store’s public-facing lottery sales, dozens of ticket terminals were busy printing tickets that appeared to be for the app’s users, raising concerns about the operation’s transparency.
“(Courier services) violate the spirit of the law,” Patrick said. “I don’t care what kind of changes they want to make, it does not solve the issue. The lottery was established was to have cash tickets so we don’t have kids buying tickets… not for an app to be a digital courier, buying thousands and thousands or millions of tickets.”
Patrick also claims that while these courier services are not necessarily illegal, they fundamentally go against the principles on which the state lottery was founded in 1991.
Jackpocket parent company, DraftKings, has also come forward to clear the air, stating that they aren’t breaking any laws and that this win wasn’t a result of a bulk ordering system designed to purchase every possible combination for millions of dollars. It says the ticket was bought by a Texan who has lived in the state for over 40 years and had only purchased 10 tickets on the platform.
SB 28 to Ban App and Internet Sales
On Thursday(Feb 20), State Sen. Bob Hall (R-Rockwall) and State Rep. Matt Shaheen (R-Collin County) filed identical bills that would see online and app lottery ticket sales banned in the Lone Star State.
SB 28 has already been referred to the Senate State Affairs committee and is up for a public hearing on Monday(Feb 24). Should the bill pass, all online couriers would have to vacate the state after Sep 1, 2025.
Controversies Continue To Rock TLC
The Texa Lottery Commission and its former director, Gary Grief, are embroiled in serious allegations of fraud following the controversial $95 million Lotto Texas Jackpot awarded to Rook TX in April 2023.
This group of investors allegedly spent over $25 million to secure almost all the possible number combinations, winning $54 million after taxes. It’s also alleged that this group partnered with stores, which had previously requested dozens of lottery terminals to be able to print the millions of tickets.
The Senate Finance Committee has scrutinized the TLC for its oversight failures, particularly regarding a recent rule change that limited the number of lottery terminals after the TLC had already provided additional ones for businesses lined to Rook TX.
Former TLC Head Named in Lawsuit
These conspiracies and accusations against the TLC have also resulted in a class action lawsuit filed by LottoReport.com founder Dawn Nettles.
Nettles claims a “long-running fraud scheme” involving Grief, Lottery.com, and Rook Tx, alleging that Greif’s lobbying efforts in 2017 set the stage for manipulation within the system.
“My client believes that this criminal conspiracy started in 2017 when Gary Greif traveled to California to lobby the founders of Lottery.com to relocate their business to Austin,” said Nettles’ attorney Manfred Sternberg, during the Senate Finance Committee panel on Monday. “From that moment on, until Mr. Grief’s sudden retirement in early 2024, the Lottery Commission and Lottery.com became a combined single criminal entity.”
Lottery.com and Grief Deny Any Wrongdoing
In response to allegations of misconduct, Lottery.com and former TLC director Gary Grief have pleaded their innocence.
According to court documents, Lottery.com founder Ryan Dickerson purchased 142 winning lottery tickets over three years, including two $50,000 Powerball wins. However, Dickerson was terminated in 2022, and the company has since overhauled its executive team.
A Lottery.com spokesperson emphasized their commitment to transparency, stating, “The Company has and continues to fully cooperate with all federal, state, and local authorities with respect to any investigations into the company’s past business practices.”
Grief, who retired in February 2024, has also come forward to deny any involvement in fraudulent activities. His attorney, Sam Bassett, highlighted Grief’s pride in his lengthy 15-year tenure, insisting he looks forward to addressing the allegations head-on.
“Gary adamantly denies being part of any dishonest, fraudulent or illegal scheme during his tenure and looks forward to cooperating in any official inquiry addressing the allegations being made.”
The Texas Gaming Commission is also looking to start its own probe and wants clarity from the Attorney General’s office over what entity has regulatory authority over lottery courier services in Texas.
Source: Next.io
