Texas Lottery Commission holding out on paying $83.5M to winner over technicality
A Texan woman who recently scooped the $83.5 million jackpot on the lottery may never receive her winnings, officials have warned.
The Austin resident, who remains anonymous, spent $20 on Texas lotto tickets for the February 17 draw using the app Jackpocket. Jackpocket is a third-party vendor—known as an online lottery courier—that allows customers to buy tickets and scratch-offs remotely for a fee.
Seven days after her victory, lottery officials in Texas announced that they were moving forward with an investigation into two separate major wins due to money laundering concerns. Despite this development coming after her win, lottery officials are still withholding payment. An estimated two million Texans use lottery courier services.
The woman made the trip to the lottery's headquarters in Austin last Tuesday, hoping to collect her winnings, but she was sent away empty-handed.
'I've gone through frustration and being sad and stressed, and now I'm just angry,' she recently told the Austin America-Statesman in the presence of her lawyer, Randy Howry. 'I literally spent $20. I didn't spend $26 million to run every single possible combination of numbers.'
The Texas Lottery Commission's Executive Director Ryan Mindell was sharply criticized during a Texas Senate Finance Committee hearing on February 12 after a group used lottery couriers to bulk purchase more than $25 million in tickets to buy 99 percent of the possible combination of numbers, clinching a $95 million jackpot in April 2023.
On February 24, the TLC said it would move forward with making lottery courier services illegal in the state after initially stating it didn't have the power to change legislation.
The commission also said it proposed a rule change to revoke the licenses of retailers working with third-party operators.
The same day, Texas Governor Greg Abbott directed Texas Rangers to investigate her lottery win and the 2023 jackpot win. Two days later, Texas Attorney General Ken Paxman announced his own investigation into the two 'suspicious' wins.
According to the woman's lawyer, the TLC's general counsel said that the commission would not decide whether to pay out the winnings until the Texas Rangers complete their investigation.
The woman maintains she is the rightful winner of last month's draw.
'Sometimes there are reasons to investigate things, but I don't think mine is one of them,' she told a Nextstar on Wednesday. 'This is an opportunity for me to do other things with my life and I want to be able to go do those,' she said.
Howry, who also said his client did no wrongdoing, added: 'We played by all the rules, and we're still playing by all the rules and we expect that my client should be paid.'
The woman's attorney told the local station that if the jackpot was not paid out within three days – the typical time it takes for winnings to be paid out after a winning ticket is presented – his client would consider all options, including litigation.
On February 28, four days after the lottery couriers ban, state senators unanimously voted to criminalize them. If passed by the Texas House and signed by Abbott, acting as a courier for pay would be a misdemeanor punishable by up to one year in jail and a fine of up to $4,000.
The TLC has been embroiled in scandal in recent years. A panel probed it, accusing its jackpots of being used as a potential vehicle for money laundering.
The statute that established the Texas Lottery in 1991 forbids using phones to sell tickets.
Senators told lottery representatives that apps similar to Jackpocket could be used by minors or could allow single buyers to purchase vast numbers of tickets in a single drawing with numerous different possible number combinations.
A spokesperson for Jackpocket said that it had suspended activity in Texas.
'Despite our proven track record of compliance and commitment to responsible gaming, the Texas Lottery Commission has issued a new policy prohibiting our services, effective immediately,' they told the news station.
'As a result, we are suspending lottery courier operations in Texas.'
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