AUSTIN, Texas — Two major lottery drawings in Texas that put nearly $180 million in the pockets of winning ticket holders have set off widening state investigations over concern that ticket sellers and buyers may have exploited the rules.
The Texas Lottery, one of the largest in the U.S., is facing mounting scrutiny from state leaders over how the winners of an $83 million jackpot this month and a $95 million prize in 2023 purchased their odds-defying tickets. Both are among the largest jackpots in the history of the Texas lottery.
At the heart of the issue, Texas officials say, is whether the games are on a level playing field.
On Wednesday, Texas Attorney General Ken Paxton launched his own investigation on top of one announced earlier this week by Republican Gov. Greg Abbott. Part of the issue lies with couriers, the companies that purchase lottery tickets for customers remotely. One was used by this month’s winner.
“Texas citizens deserve far better than bad actors getting rich off of a lottery system that is open to exploitation, and we will hold anyone who engages in illegal activity accountable,” Paxton said in a statement.
Here’s what else to know about Texas’ mega lottery winnings:
What are courier services?
Couriers are companies that buy and send lottery tickets on behalf of customers online. The practice bypasses state law that requires tickets to be purchased in person. Couriers, which operate in 19 states according to a 2024 report from the Florida Office of Program Analysis and Government Accountability, do not have any regulatory oversight or licensing requirements in Texas.
Some lawmakers have expressed concern about children and people outside the state purchasing tickets.The head of the Texas Lottery Commission said this month that the agency will ban couriers, walking back years of resistance to pushing them out of the market.
“Lottery courier services operating in Texas have been a significant concern for many of our stakeholders,” executive director Ryan Mindell said in a statement. “Previously, the agency interpreted its authority as not extending to the regulation or prohibition of these services.” The agency has since reconsidered after reviewing state laws, Mindell said.
Who won the nearly $180 million?
Neither winner of the big drawings has come forward publicly and they are under no obligation to do so under Texas law.
The $83 million ticket was purchased by a customer at a courier store called Winners Corner in Austin on Feb 17. The chain has locations in six states.
The $95 million drawing from 2023 was won after the winners purchased nearly every possible number combination, according to Abbott’s office. An investigation by the Houston Chronicle found the ticket was purchased at a retailer that added a dozen lottery terminals to print tickets the day before the drawing.
Experts told the newspaper that QR codes can be read by the machines to process large volumes of tickets in a short time. Normally, the QR images generate directly from the Texas Lottery Commission’s mobile app.
One of the state’s five lottery commissioners has since resigned amid the criticism and the commission said it will no longer allow tickets to be purchased through couriers.
“We do not engage in bulk ticket purchasing, we are not part of some organized crime syndicate,” Paul Prezioso, an executive at courier site Jackpot.com told lawmakers Monday. “We believe that a regulated courier industry is a net positive for the state of Texas.”
Can you still purchase lottery tickets in Texas?
The Texas Lottery is still in full swing and residents will be allowed to use courier services until the state’s Lottery Commission changes the rules, which is expected to happen in April.
The commission’s plan to ban couriers comes after years of insisting that the body had no authority over the companies. It also follows criticism from Republican Lt. Gov. Dan Patrick, a former television sportscaster in Houston who earlier this month walked into a Winners Corner store with a camera rolling and began asking questions.
Gambling in Texas
Texas gambling has had a complicated history in recent years. Efforts to expand gambling in the nation’s second-most populous state have failed despite expensive lobbying blitzes to bring casinos to the state and legalize sports gambling.
Supporters have sought to put a constitutional amendment to voters, but the proposals have not gotten far in the Legislature.
The state lottery has brought in more than $40 billion in revenue and awarded more than $90 billion in winnings since its establishment in 1992, according to the commission’s website.
