An unnamed woman in Texas is suing the executive director of the Texas Lottery Commission (TLC) for withholding a controversial $83.5 million jackpot ticket.
According to court documents filed in the District Court of Travis County, a Texas woman is suing Acting Deputy Executive Director of the TLC Sergio Rey. The plaintiff, Jane Doe, is seeking declaratory and injunction relief over the nonpayment of a $83.5 million winning lottery ticket purchased through courier service Jackpocket.
The plaintiff claims the TLC and Rey are violating Texas Administrative Code by refusing to pay the jackpot prize after she allegedly made a valid lottery ticket purchase through Jackpocket, who obtained the ticket on her behalf from retailer Winners Corner.
According to the suit, Winners Corner is a licensed lottery ticket retailer in Texas. The plaintiff allegedly presented the winning ticket to the TLC with the commission determining she was the lawful bearer of the winning ticket for the Lotto Texas jackpot.
The plaintiff claims she was never notified by Rey or the commission that the winning ticket was invalid or unlawful but has yet to receive the funds after the TLC decided to ban the operation of lottery courier services in the state in the wake of fraud allegations stemming from an investigation into a different lottery jackpot win.
Before the TLC’s ban, lottery courier services had accepted customers in Texas since 2019.
“In Texas, a deal is a deal, unless you are the Texas Lottery,” reads the complaint. “Every Texan knows what that should mean when it comes to the lottery—if you win, you should get paid. When you win, the lottery should pay you—not stall, not waffle, not hem, not haw, not try and change the rules and not try to back out of the deal.”
The plaintiff claims the TLC is backing out of the deal after it banned courier services following an investigation by the Houston Chronicle that found a group of investors spent millions to purchase the Lotto Texas jackpot. The probe sparked a class action lawsuit and led to the resignation of former TLC Executive Director Ryan Mindell, who had spent one year in the role. Mindell led the TLC after Gary Grief retired from the commission. Grief is a defendant in the class action over claims of facilitating a “long-running fraud scheme.”
The former TLC director denies any wrongdoing amid the accusations.
“Lotteries with integrity pay the winners,” continues the complaint. “Responsible lotteries pay the winners. Anything short of that destroys the integrity of the lottery and shatters the confidence of those who play it. It shouldn’t take a lawsuit to get paid.”
Lottery legislation in Texas
The plaintiff has filed her suit as lawmakers move forward with lottery-related measures.
Last week, the Texas House passed Senate Bill 3070 by a 112-27 vote. The measure would transfer oversight of the lottery to the Texas Department of Licensing and Regulation. SB 3070 also bans courier services and the purchasing of over 100 tickets in one transaction.
Earlier this month, the Senate passed the measure. The piece of legislation will now head back to Senate for approval following amendments by the House. If the amendments are approved by the Senate, the bill will head to Gov. Greg Abbott’s desk for signature.
State Sen. Bob Hall proposed a bill to abolish the Texas lottery entirely. The measure, Senate Bill 1988, aims to repeal the state Lottery Act and shutter the TLC by 2026.
SB 1988, filed in March, is pending in the Senate State Affairs Committee.
