Texas Lottery Commission Executive Director Ryan Mindell is relinquishing his role as the state’s lottery is shrouded in controversy amid fraud allegations related to courier sales.
According to a statement from TLC chairman Robert G. Rivera, Mindell resigned from his post on April 21, one year after he was appointed as executive director. Mindell first joined the commission in 2016 as deputy general counsel and was promoted to deputy executive director before taking over for Gary Grief, who retired from the commission last year.
“I think that when I became executive director, there were certainly things that I wanted to change about the tone, tenor and approach of the agency,” said Mindell during a House Licensing Committee hearing earlier this year.
Deputy Executive Director Sergio Rey has replaced Mindell as Acting Executive Director. The TLC plans to discuss the selection process for its new executive director on April 29.
Lottery ticket courier scandal in Texas
Mindell has stepped down from the commission after an investigation by the Houston Chronicle found that a group of investors allegedly spent millions to purchase a $95 million winning lottery ticket in 2023 for the Lotto Texas jackpot. According to a class action lawsuit filed in a Texas district court earlier this year, the group of investors, Rook TX, is being accused of collusion while the TLC allegedly ignored money laundering.
Rook TX spent more than $25 million to purchase a large number of tickets for the jackpot.
Grief has been tied to the alleged scandal and is named as a defendant in the class action suit over claims of facilitating a “long-running fraud scheme” by manipulating the Texas Lottery and allowing lottery ticket sales across state lines and international borders.
The former director has denied any wrongdoing amid the accusations.
As a result of the probe and class action suit, the TLC declared lottery ticket couriers in Texas no longer legal under state law. The decision to declare couriers unlawful came after Texas Lt. Gov. Dan Patrick called for a probe into deals between couriers and stores.
The ban on lottery ticket couriers in Texas is set to start on April 29.
Texas considers new lottery legislation
Lawmakers have also responded to the lottery courier controversy by introducing new pieces of legislation, including House Bill 3201. The proposed measure, sponsored by Rep. John Bucy III, aims to create a regulatory framework for lottery courier sales in Texas.
The bill calls for the TLC to provide oversight for licensing and regulation of ticket couriers.
Sens. Bryan Hughes and Paul Bettencourt have also taken a stance against potential collusion by introducing Senate Bill 1346 as a measure that prohibits lottery ticket sales to “persons attempting to purchase all possible winning tickets in a lottery drawing.”
The bill, which has been sent to the House, calls for a hearing if illicit sales are expected.
