Texas To Investigate Lottery Jackpots As Questions Swirl About Online Ticketing Firms

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Texas' guv has directed state police to examine two controversial lottery prizes in the middle of growing examination over the role of online ticketing firms in the state.


Republican Gov. Greg Abbott asked the Texas Rangers to examine two Lotto Texas jackpots including virtual ticket sales: this month's $83.5 million prize, and a $95 million jackpot from 2023 won by a group of financiers. Both cases, according to federal government officials, impact the public's self-confidence in the lottery.


" Texans must be able to trust in our state's lottery game system and understand that the lottery is carried out with integrity and lawfully," Abbott said Monday in a press release, as lawmakers blasted the Texas Lottery Commission for failing to manage lotto couriers.


Lottery tickets may be bought essentially in Texas using companies referred to as lottery courier services. Couriers gather the tickets for consumers at physical shops they often own. Critics argue the practice makes it impossible to validate the legality of the purchasers and is susceptible to money laundering.


Lottery couriers, which have actually been running in the state considering that 2019, became a focus in April 2023 after a single entity bought 25 million lottery tickets in less than 72 hours utilizing a carrier service, CNN affiliate WFAA reported. The entity purchased "almost every possible number mix," the release from the governor's office stated. The financier doubled its money due to the fact that the prize was so high, and the winner took home $57.8 million before taxes, WFAA stated.


The president of Lottery Now, the company utilized to mass-order the tickets in the 2023 win, declined to comment on the successful purchase. He formerly said the winning ticket was bought in person at the company's retail place in Colleyville, Texas, rather than through its app, Mido Lotto.


The Texas Lottery Commission has actually launched an examination into all courier services running in the state and has actually limited the number of lotto terminals allowed to five per seller, it stated in a statement. The commission decreased to comment on the investigations when reached by CNN.


Courier services utilized throughout the country
Courier services are running in 19 states, according to a 2024 Florida Office of Program Policy Analysis and Government Accountability report.


Only 3 states - New york city, New Jersey and Arkansas - regulate the courier service industry, according to a 2024 Texas House report. Without those regulations in Texas, couriers aren't needed to obtain a license or authorization from the Texas Lottery to operate, the report discovered.


The odds of winning the Lotto Texas video game are 1/25,827,165, though those odds can be enhanced by purchasing multiple tickets, and in theory, there's no limit on the variety of tickets someone can buy, according to WFAA.


Courier services added to $101 million in lotto ticket sales over the first 7 months of the 2023 financial year in Texas, according to the Texas House report.


The winning ticket for this month's $83.5 million reward was acquired at an Austin retail shop through Jackpocket, one of the biggest lotto carrier services in the country, according to a press release. A representative for the company, a subsidiary of DraftKings Sportsbook, stated its service does not permit bulk buying and puts a $600 day-to-day purchase limitation for each customer.


Texas Lottery Commissioner Clark Smith resigned Friday amidst the installing controversy, the commission validated to CNN.


And previously this month, a class action lawsuit was filed versus the former director of the Texas Lottery Commission and several others, declaring scams, misappropriating funds, illegally selling tickets and controling the result of lottery game games. CNN has reached out to the plaintiffs for comment.


Texas Gov. Greg Abbott is seen at the White House in Washington, DC, on February 5.


Andrew Harnik/Getty Images


Texas Lottery is moving to ban courier services from running in the state "to guarantee all ticket sales adhere to state law and agency policy as well as to maintain public trust," Texas Lottery Commission Executive Director Ryan Mindell stated.


"Lottery carrier services operating in Texas have been a significant issue for much of our stakeholders. Previously, the agency interpreted its authority as not reaching the policy or prohibition of these services," Mindell stated in a news release.


However, after an evaluation of the State Lottery Act and "info from recent retailer investigations," the commission "will revoke the license of a retailer that works with or assists a carrier service," Mindell stated.


The Coalition of Texas Lottery Couriers called the lotto commission's announcement "abrupt, disappointing and unnecessary" in a statement reported by WFAA.


"Lottery carriers have actually been lawfully and properly running in Texas because 2019, while constantly keeping a transparent and expert relationship with the Texas Lottery Commission," the group stated.


"Throughout this process, the TLC has actually declared to have no regulative authority over courier activities, despite couriers' persistent demands to be regulated, just as we are in other states."


Jackpocket stated on Tuesday it would suspend its operations in Texas.


"Despite our tested performance history of compliance and dedication to responsible video gaming, the Texas Lottery Commission has actually released a new policy forbiding our services, efficient immediately. As a result, we are suspending lotto courier operations in Texas," said Pete Sullivan, Senior Vice President of Lottery at DraftKings, in a statement.


Sullivan stated Jackpocket has actually driven over $550 million in lottery ticket sales in Texas since it began its services in 2019, and he wishes to see more clear-cut policy in the state so carrier services can keep operating. Jackpocket runs in 18 other states.


Another company, Lotto.com, stated it has also been running in the state legally because 2019 and expressed disappointment by the commission's decision and is "examining our choices."


Republican Lt. Gov. Dan Patrick slammed the Texas Lottery's statement in a post to social media. "I've never ever read so much garbage from a state agency press release in my 18 years in office," Patrick wrote. "Today's action is an obvious admission that the Texas Lottery Commission had the oversight authority all along and allowed these businesses to creep into Texas and undermine the integrity of the Texas Lottery."


In another post, Patrick asked the Texas Rangers to broaden its examination beyond the two specific events to "any and all matters connected to the Lottery Commission first enabling lottery couriers into Texas and any and all possible criminal activities internally or externally arising from the Lottery Commission's actions or failures to act."


Recently, Patrick went to the courier-owned Austin store that sold the $83.5 million winning ticket and questioned among its employees about how the organization runs in a video posted to .


This story has actually been upgraded with extra info.


CNN's Taylor Romine added to this report