Abbott’s office announced the investigation in a news release Monday, just hours after the Texas Lottery Commission declared third-party couriers illegal.
COLLEYVILLE, Texas — Gov. Greg Abbott Monday directed the Texas Rangers to investigate two major lottery drawings, including this month’s $83.5 million jackpot and a $95 million lottery win from 2023 that involved the bulk purchase of tickets.
Abbott’s office announced the investigation in a news release Monday, as state senators grilled the Texas Lottery Commission and its executive director.
A political firestorm surrounding the Texas Lottery is burning hotter than ever. Legislators Monday accused former lottery regulators of corruption, demanded overhaul, and likened the 2023 lottery drawing to the Enron scandal.
“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 statement.
Minutes after the governor announced the investigation, Lt. Gov. Dan Patrick called for the inquiry’s scope to expand and include “any and all matters related to the Lottery Commission first allowing lottery couriers into Texas and any and all possible crimes internally or externally arising from the Lottery Commission’s actions or failures to act.”
Texans use such courier services to buy lottery tickets online.
Customers place their order using an app, then a third party collects the ticket. If that ticket generates winnings, the courier will deliver the ticket to the customer for redemption.
For years, the Texas Lottery Commission has argued it cannot regulate this practice because the courier transaction takes place after the ticket’s sale. This contention has infuriated lawmakers, who fear the loophole could allow crime syndicates to easily launder money.
“At best, the lottery commissioners were deliberately indifferent,” Sen. Bob Hall, R-Rockwall, said Monday. “At worst, they’re co-conspirators in the vastest financial crime since Enron.”
The practice first drew lawmakers’ scrutiny in April 2023. The Lotto Texas game rolled over 93 times, driving the jackpot to a record $95 million.
The odds of winning the Lotto Texas game are 1/25,827,165, though players can improve their chances by purchasing multiple tickets. In theory, there is no restriction on the number of tickets a single person can purchase.
Using a courier service, a single entity purchased 25 million $1 lottery tickets in less than 72 hours. The move effectively guaranteed victory.
Because the jackpot was so high, the investor doubled its money. The winner took home $57.8 million, before taxes.
A Colleyville store sold the winning numbers, 3-5-18-29-30-52. The shop, Hooked on MT, sells only Texas lottery tickets and Montana-themed souvenirs.
“We can’t gloss over this,” Sen. Paul Bettencourt, R-Houston, said during a finance committee hearing on Feb. 12. “We can’t look the other way. We have to look directly at this. This is, 99 percent probability, money laundering.”
Still, Texas Lottery Commission executive director Ryan Mindell told the panel the commission had limited authority to regulate third-party purchases.
Days after the heated meeting, Texas lottery commissioner Clark Smith resigned his post.
Then, someone secured an $83.5 million jackpot from a store in Austin. To purchase the tickets, the winner used a courier service that also owned the retail store where the tickets were sold.
Patrick visited the store and questioned a clerk. The lieutenant governor posted a video of the interaction on his social media pages.
Monday, the Texas Lottery Commission changed its tune and declared third-party courier services illegal in Texas. Once the rule is adopted, the commission will revoke licenses of those retailers using courier services.
SMU political science professor Matthew Wilson noted that the Texas Lottery Commission needs to appease lawmakers. The legislature has a once-in-a-decade opportunity to eliminate the commission this session.
“Their challenge really is to establish their credibility and to establish the transparency of their operations,” Wilson said. “It seems like they’re trying to anticipate what lawmakers might do and get out ahead of it.”
The commission’s announcement came hours before the Senate committee on state affairs considered Hall’s bill, which would criminalize courier services.
The Coalition of Texas Lottery Couriers in a statement called the lottery commission’s announcement “abrupt, disappointing and unnecessary.”
“Lottery couriers have been legally and responsibly operating in Texas since 2019, while always maintaining a transparent and professional relationship with the Texas Lottery Commission,” the group said in a statement. “Throughout this process, the TLC has claimed to have no regulatory authority over courier activities, despite couriers’ persistent requests to be regulated, just as we are in other states.”