The drama between the Texas Lottery, lottery couriers and the continued scandal around a potentially rigged drawing escalated this week with a new lawsuit filed by Lotto.com against the Texas Lottery Commission (TLC) over the commissions rapid about-face on the legality of lottery couriers in the state.
Lotto.com is seeking the Travis County court to intervene and stop former TLC Executive Director Ryan Mindell’s new proposed rules that lottery couriers are no longer allowed in the state. Mindell resigned from his post with TLC earlier this week.
Lawsuit says TX Lotto gave couriers numerous OKs
In addition to arguing that the way these rules were rolled out and adopted were not done by the letter of the law and are unenforcable, the lawsuit introduces a long list of exhibits affirming Lotto.com’s stance that the TLC and Mindell in particular repeatedly told them that couriers were operating within the scope of the law.
Most crucial to Lotto.com’s brief is a letter sent by Mindell in his role as TLC director of operations to Lotto.com confirming the company could come in and offer its services as an online courier in the state and not be in violation of the law. Sent in 2021, Mindell stated explicitly TLC had no regulatory authority to oversee them since the courier does not actually esell lottery tickets, just works as a conduit to deliver tickets from a retailer to a customer through its online app.
A similar letter to courier Jackpot.com is also an exhibit in the lawsuit.
Lottery QR codes a subject of confusion
Despite this stance, Lotto.com said TLC officials paid a February 2025 visit of “nothing more than afive minute visit” to Players Cafe, a lottery retailer Lotto.com works with, then sent a show cause letter to the retailer claiming noncompliance.
At heat of the issue was a QR code TLC said Player’s Cafe was using that was not approved by TLC, howevewr, Lotto.com states it is the exact same QR provided to TLC by its supplier IGT.
The lawsuit also said the introduction adn fast adoption of new regulations regarding the prohibition of lottery couriers did not follow due process. Lotto.com claimed the TLC issued new regulations for adoption regarding lottery couriers and began taking action against in the span of two days when new rules require at least 30 days notice to be adopted by a a state agency in Texas.
Scheme to guarantee jackpots triggered scrutiny
The scrutiny around lottery couriers began when a local newspaper report uncovered a scheme to buy every available numerical combination of a jackpot (totalling nearly 25 million different tickets) during a 2023 drawing. That drawing yielded a $95 million prize, then a second prize for $83 million started raising eyebrows. Lawmakers, such as Lt. Gov. Dan Patrick, began a campaign to crack down on lottery couriers earlier this year when news of the conspiracy made headlines.
In the suit, Lotto.com siad not only were couriers not a part of this ensured jackpot scheme but that the TLC sought their advice on how to crack down on such events. The group also said the primary problem was that a low-levellottery employee approved a rushed request from a retailer for more than 20 additional lottery sales terminals. Mindell is on record admitting this was a “mistake” by the lottery.
Lotto.com argued that not only were no couriers involved in this jackpot scheme but that Lotto.com CEO Thomas Metzger raised concerns about the additional terminals. Per the suit, Metzger phoned the lottery along with IGT’s Joe Lapinski, to advise against the request for additional terminals.
Former TX Lotto director sued for collusion
The suit also includes text communication between Metzger and the TLC Executive Director at the time Gary Grief where Grief asked if Metzger would be coming to Austin soon, as he hoped he could speak with a lottery commissioner about the issue of group purchasing and “buying” jackpots.
In a separate lawsuit, a woman is claiming that Grief was complicit in helping the ensured jackpot scheme succeed.
Lotto.com is seeking a temporary injunction from the court to remain in Texas as the TLC prepares to meet on April 29 and potentially formally adopt new regulations related to couriers.
Couriers seeking clarity and injunction
A statement from the Coalition of Texas Lottery Couriers reiterated the need for action.
“It is time to reconsider the agency’s politically motivated decisions regarding lottery couriers and restart good faith collaboration between our companies and fresh leadership at the TLC. For years, lottery couriers have asked to be regulated and remain committed to abiding by a regulatory framework that protects the integrity of the Texas Lottery while also allowing our millions of Texas customers to continue to safely and conveniently order lottery tickets.”
