News writer
The Texas Lottery Commission couldn't seem to catch a break, but that has changed. A surprise development has given the embattled agency a rare reason to celebrate.
However, the political pressure is mounting and major changes are looming. Is this rare win just a brief lucky streak or is it the calm before the next legal storm?
A win for the Texas Lottery Commission
After a rough few months for the Texas Lottery Commission (TLC), they finally were able to celebrate after a lawsuit accusing Lottery.com and the TLC of being involved in a conspiracy to defraud lottery customers was dropped by the plaintiffs.
This news comes on the heels of ongoing legal drama in Texas that seems to be heading to the likely dismantling of the TLC by the state government.
For this specific lawsuit, it was filed on February 14, 2025. It accused Lottery.com, a well-known lottery courier, the TLC, former TLC Executive Director Gary Grief, and the Texas Lottery's tech partner, IGT, of engaging in what the plaintiffs called “systemic fraud.”
The lawsuit claimed the alleged fraud consisted of “misappropriating lottery funds, illegally selling tickets across state lines, and manipulating the outcome of lottery games.” This, of course, all stems from the infamous Lotto Texas drawing in April 2023.
For that particular drawing, investigators determined that a group of individuals purchased 99% of the roughly 26 million possible number combinations for that drawing. These individuals allegedly spent $25 million to win the $95 million jackpot.
The lawsuit was filed by multiple plaintiffs, led by Dawn Nettles, a Texas resident. They collectively accused the defendants of "defrauding" Texans, with Lottery.com specifically being accused of having been “engaged in business in Texas, specifically to launder stolen lottery funds from the State of Texas.”
Changes since the lawsuit was filed
Since this lawsuit was filed four months ago, many changes have taken place in Texas. Shortly after the filing, there was another $83.5 million Lotto Texas jackpot winner crowned.
That winner has yet to be paid since they bought the winning ticket from a retailer in Austin via Jackpocket, another lottery courier. They have since filed a lawsuit against the Texas Lottery for their winnings.
Because of this incident and the April 2023 incident, the TLC decided to ban lottery couriers in the state. While the state tried to ban lottery couriers, a judge sided in their favor.
However, it looks like that could all be for nill, as bills in the House and Senate have passed that would abolish the TLC and transfer the lottery oversight to the Texas Commission on Licensing and Regulation.
This gave the Texas Lottery a “two-year lease on life,” as these bills would establish a two-year probationary period during which the lottery's future would hang in the balance.
The defendant speaks out
With the plaintiffs dropping the lawsuit, it could be a sign that they are perhaps happy with where the legislative direction is going in Texas. Lottery.com said they actually got a chance to speak with Nettles during a hearing with Texas lawmakers. Gregory Potts, the firm's Chief Operating Officer, said:
I had the opportunity to meet Ms. Nettles earlier this year when I appeared before the Texas Senate Finance Committee. She is a long-time advocate for the fair and transparent operation of Texas lottery games, a belief shared by our company, Lottery.com.
Potts added:
We believe the decision to seek a voluntary dismissal speaks to the lack of any evidence that Lottery.com was engaged in any wrongdoing. We have fully cooperated with all investigations into the April 2023 Lotto Texas drawing, and to my knowledge, there has been no finding against the Company of any of the activities claimed in this lawsuit.
Enjoy playing the Texas Lottery, and please remember to play responsibly.
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