The Texas Lottery Commission (TLC) is under growing scrutiny following recent events surrounding a significant $83.5 million Lotto Texas jackpot, sparking concerns over the integrity of the state's lottery system. The controversy has led one of the state's highest elected officials, Lt. Gov. Dan Patrick, to take matters into his own hands and investigate the situation personally.
The Texas state lottery, which was approved by voters in 1991 and established by the Legislature in 1993, has had a complicated history. Despite its turbulent existence, the TLC has generated substantial revenue for the state. Since 1997, it has contributed over $34 billion to the Foundation School Fund and more than $253 million to the Texas Veterans Commission. However, recent reports from the Texas Legislature Sunset Advisory Commission highlight ongoing concerns about its operations.
The latest controversy centers around an $83.5 million jackpot sold at Winners Corner TX LLC, a board game and lottery store in Austin. The store topped the list for total sales in 2023 with over $127 million in revenue, according to the TLC. The winning ticket was purchased using a third-party courier service called Jackpocket, a mobile app that allows users to buy lottery tickets online. Jackpocket, which was acquired by DraftKings for $750 million last year, handles the process of purchasing tickets on behalf of customers, collecting winnings, and ensuring that prizes are delivered to the correct person.
While lottery couriers have been operating in Texas since 2018, concerns over their role in the lottery system have intensified following the high-profile win. The Texas Sunset Advisory Commission's report revealed that the state was aware of courier services operating in Texas as early as 2015. During a Texas Senate Finance Committee hearing, lawmakers questioned TLC representatives and asked for an opinion from the Texas Attorney General regarding the use of couriers. TLC Executive Director Ryan Mindell sent a letter to Attorney General Ken Paxton, noting that there is no statutory authority for the TLC to regulate couriers like lottery sales agents.
In Texas, the issue has raised alarm bells for some lawmakers. Lt. Gov. Dan Patrick, concerned about the potential for public distrust, visited the Winners Corner location in Austin. In a video he posted online, Patrick questioned an attorney representing Jackpocket about the implications of the courier service selling an $83 million winning ticket at the same location that printed the ticket. "Do you not see an issue where the public might lose confidence if the courier service somehow happened, at this one location in the entire state of Texas, [to sell] an $83 million winning ticket, and they also own the location that printed the ticket?" Patrick asked.
The controversy has prompted swift action in the Texas Legislature. Just days after Patrick's video was shared, Sen. Bob Hall (R-Edgewood) filed Senate Bill (SB) 28, a proposal to prohibit the ability to play the lottery or purchase tickets through internet or mobile applications like Jackpocket. The bill is a duplicate of a similar bill Hall introduced previously and is paired with a House bill filed by Rep. Matt Shaheen (R-Plano).
As the debate over lottery couriers intensifies, Texans are left questioning the transparency and fairness of the state's lottery system. With lawmakers pushing for changes and more scrutiny on the TLC's operations, it remains to be seen how the controversy will unfold and what impact it will have on the future of the Texas Lottery.
