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Arizona's $12.8M lottery showdown moves forward with a narrower focus

The Arizona case is moving forward, but a judge has put most claims on hold until ownership is settled.

The Circle K located at 5601 E. Bell Road, in Scottsdale, Phoenix, Arizona.
The Circle K located at 5601 E. Bell Road, in Scottsdale, Phoenix, where it all started. Photograph credit: Google Maps.
Todd Betzold
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A disputed Arizona Lottery ticket worth nearly $12.8 million is still waiting for its legal owner. Now, a Maricopa County judge narrowed the next stage of the fight between Circle K, two former employees, and a customer. The judge has put most claims on hold until ownership is settled.

At a hearing on Friday, November 6, 2026, Superior Court Judge Joseph Kreamer declined to dismiss seven counterclaims brought against Circle K. However, he paused six, saying the court must first determine who owns the winning ticket. The ruling keeps the dispute alive without awarding the ticket or its prize to anyone.

Three sides claim one winning ticket

The disagreement began on November 24, 2025, at the Circle K near 56th Street and Bell Road in Scottsdale.

A customer requested $85 worth of tickets for The Pick, an Arizona Lottery game, but had only $60. The customer left the remaining tickets at the store.

The following morning, store manager Robert Gawlitza discovered that one of those leftover tickets had won the jackpot of $12.8 million. He says he clocked out and had coworker Marline Ybarra ring up his purchase.

Gawlitza argues that he was following a well-known, unwritten store policy requiring employees to pay for printed, unpaid tickets worth more than $20.

Circle K took possession of the ticket and fired Gawlitza. The company maintains that an Arizona Lottery rule gives retailers ownership of printed tickets that have not been sold.

The customer who originally requested the tickets also claims ownership, creating a three-way contest over the multimillion-dollar prize.

Ownership comes before other claims

Attorney Josh Kolsrud, who represents Gawlitza and Ybarra, filed seven counterclaims against Circle K. These counterclaims include unjust enrichment, conversion, and breach of contract.

Kolsrud argues that Circle K changed its position on the alleged employee purchase policy once it determined the value of the ticket.

At the hearing, Circle K asked the judge to dismiss all seven counterclaims. However, the judge did leave them in place, but he put six of them on hold.

Judge Kreamer explained that resolving those claims would be premature before determining whether the former employees own the ticket. Determining the owner of the ticket is the gateway to whether the paused claims can proceed.

Kolsrud welcomed the approach, calling the ruling "a very wise decision." Attorneys representing Circle K and the customer also agreed with the plan.

For readers following the case, the distinction matters: allowing claims to remain in the lawsuit does not mean the judge has accepted the employees' ownership argument.

A judge or a jury?

Now the next big question is the case revolves around on who should decide the ownership dispute.

Judge Kreamer ordered briefs by December 4, which address whether the case should be decided by a jury or by the judge. While the Circle K and the customer’s attorney argue there is no right to a jury, Kolsrud says there may be.

The judge is scheduled to consider that issue at a December 15 hearing.

For now, Friday's ruling sets the order of proceedings while leaving the central question unresolved: which of the competing claimants legally owns the ticket and can collect the prize?

Enjoy playing the Arizona Lottery, and please remember to play responsibly.

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