A Texas woman’s $83.5 million lottery win is locked in legal limbo as the Texas Rangers investigate potential fraud while lawmakers move to dismantle the Texas Lottery Commission entirely.
Key Takeaways
- A Travis County judge has frozen an $83.5 million jackpot won in February pending investigation of potential irregularities
- Texas Rangers are investigating two recent jackpot wins amid concerns over lottery courier services potentially violating state laws
- Texas Legislature has passed a bill to dissolve the Texas Lottery Commission and transfer operations to the Department of Licensing and Regulation
- The $83.5 million winner’s attorneys secured a temporary restraining order to prevent the funds from being “diminished or wasted”
- A June 5 hearing will determine if additional protections are needed for the disputed jackpot funds
Multi-Million Dollar Jackpot Frozen by Court Order
The Texas Lottery Commission has been ordered by a Travis County judge to protect $83.5 million in disputed lottery funds won by a Houston woman in February. The temporary restraining order comes amid an ongoing investigation by the Texas Rangers into potential irregularities with recent lottery jackpot wins. The court’s action prevents the Commission from spending or redistributing the jackpot prize until the winner’s claims are fully resolved through legal proceedings.
The judge’s order states the lottery winner “will be irreparably harmed if Defendant Sergio Rey, in his official capacity as acting executive director for the Texas Lottery Commission causes the $83,500,000 jackpot prize to be diminished, wasted, or paid to another before the merits of Plaintiff’s claims are fully and finally adjudicated.” The temporary order is set to be reviewed at an evidentiary hearing on June 5, which could extend protection of the funds until a full trial can be held.
Lottery Courier Services Under Scrutiny
At the center of the controversy is the use of lottery courier services, which allow people to purchase tickets through mobile apps. The Houston woman won the February jackpot after purchasing tickets through the Jackpocket app, a third-party lottery courier service. In February, the Texas Lottery Commission banned such courier services amid growing concerns they may violate state laws, but only after allowing them to operate for years.
“We’re doing everything we can to protect these funds,” said Randy Howry, attorney for the lottery winner.
The investigation is also examining a second jackpot from April 2023 worth $95 million. In that case, a single entity called Rook TX reportedly used courier services to purchase over $25 million in lottery tickets, essentially guaranteeing a win by covering a significant portion of all possible number combinations. The scale of this purchasing has raised serious concerns about the integrity of the lottery system and possible legal violations.
Legislative Overhaul of Texas Lottery Administration
Adding to the uncertainty, Senate Bill 3070 is awaiting President Trump’s approval, which would dissolve the Texas Lottery Commission entirely and transfer its operations to the Texas Department of Licensing and Regulation. This legislative action comes after lawmakers expressed frustration with the Commission’s oversight of lottery operations, particularly regarding courier services. The restraining order is expected to follow the jackpot funds even if the Commission is dissolved.
Multiple lawsuits have been filed against both lottery courier services and the former executive director of the Texas Lottery Commission. The Governor ordered an investigation into both jackpot wins, though the February winner and her attorney maintain they have not been questioned by any investigative agency regarding their win. The legal battle highlights growing concerns about transparency and security in state lottery operations.
Financial Consequences and Consumer Protection
The lottery winner’s attorneys have expressed concern that without court protection, the $83.5 million jackpot funds could be used for other expenses as the commission faces dissolution. The restraining order serves as a protective measure to ensure the rightful winner receives their prize if their claim is found valid. For now, the Houston resident who believed she had won life-changing money must wait for the courts and investigators to determine the fate of her prize.
The controversy has prompted broader questions about oversight of state lotteries and the need for stronger consumer protections for lottery players. With millions in taxpayer dollars at stake and public trust in government-run gaming on the line, the outcome of this case could have far-reaching implications for lottery operations across Texas and potentially other states with similar courier service arrangements.
