$83.5M Lotto Prize AT RISK – Manipulation?!

Person in suit with gavel and scales of justice

An $83.5 million lottery jackpot winner in Texas is left in limbo as a judge suspends the payout amid serious fraud allegations, with Texas Rangers now investigating potential manipulation of the lottery system.

Key Takeaways

  • A Travis County judge has issued a temporary restraining order preventing the Texas Lottery Commission from disbursing an $83.5 million jackpot won in February.
  • The Texas Rangers are conducting an investigation into possible irregularities with this jackpot and another $95 million prize from April 2023.
  • Lawmakers have approved legislation to dissolve the Texas Lottery Commission and transfer its operations to the Texas Department of Licensing and Regulation.
  • The lottery winner purchased tickets through the Jackpocket app, part of the controversial “lottery courier services” that have since been banned in Texas.
  • A crucial court hearing on June 5 could extend protection of the funds until the case is resolved.

Judicial Intervention to Protect Disputed Funds

In a stunning development that has rocked the Texas lottery system, a Travis County judge has issued a temporary restraining order against the Texas Lottery Commission, preventing the disbursement of an $83.5 million Lotto Texas jackpot won by a Houston woman earlier this year. The order comes as the Texas Rangers conduct an extensive investigation into potential foul play connected to this jackpot and another substantial win from April 2023. The court’s decision represents an unprecedented intervention in what should have been a routine payout process.

The restraining order explicitly aims to protect the jackpot funds from being diminished, wasted, or paid to another before the merits of Plaintiff’s claims are fully and finally adjudicated. This protective measure comes amid concerns that the funds could be misallocated during a period of transition for the commission. The winner’s legal team has expressed concern that without court intervention, their client’s rightfully won prize could be in jeopardy as the commission faces potential dissolution.

Lottery Courier Services Under Scrutiny

At the heart of the controversy is the use of lottery courier services, which Texas lawmakers now believe may violate state laws. The Houston woman who won the February jackpot purchased her tickets through the Jackpocket app, a third-party service that buys lottery tickets on behalf of users. In February 2024, following growing concerns about these services, the Texas Lottery Commission implemented a ban on all lottery courier services, casting further doubt on the legitimacy of wins facilitated through these platforms.

“We’re doing everything we can to protect these funds,” said Randy Howry, attorney for the lottery winner, highlighting the urgency of the situation as both the prize money and the commission’s future hang in the balance.

Even more concerning is the revelation about the April 2023 jackpot of $95 million. Investigators discovered that a single entity called Rook TX had used courier services to purchase over $25 million in tickets, essentially guaranteeing a win. This shocking manipulation of the system has prompted multiple lawsuits against courier services and the former executive director of the Texas Lottery Commission, revealing potentially systemic issues in the state’s lottery operations.

Legislative Action to Overhaul the System

In response to these troubling developments, Texas lawmakers have taken decisive action. Senate Bill 3070, which would completely dissolve the Texas Lottery Commission and transfer its operations to the Texas Department of Licensing and Regulation, is currently awaiting approval from President Trump. This bill represents a significant overhaul of the lottery system in Texas, prompted by the apparent regulatory failures that allowed questionable lottery practices to flourish.

The judge’s order states that 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.”

While the investigation continues, the Houston winner and her attorney maintain they have not been questioned by any agency regarding the February win, suggesting they may be innocent victims of a larger systemic problem. The evidentiary hearing scheduled for June 5 will be crucial in determining whether the court will extend protection of the funds until a trial can fully address the legitimacy of the jackpot claims and ensure proper disbursement of the prize money.