Gov. Abbott Enters Texas Lottery Drama, Orders Investigation By Rangers

Texas Gov. Greg Abbott became the latest political figure to inject himself into the Lone Star State lotto courier drama, ordering the law enforcement agency the Texas Rangers to conduct investigations into the last two substantial Texas Lotto jackpot payouts.

The Rangers will probe the circumstances surrounding the April 2023 jackpot worth $95 million and the Feb. 17 jackpot worth $83.5 million. The blowback from last week’s victory, in which the winning ticket was sold at a retail store in Austin owned by DraftKings-owned lotto courier Jackpocket, has created a statewide maelstrom.

“Texans must be able to trust in our state’s lottery system and know that the lottery is conducted with integrity and lawfully,” Abbott said in a statement. “Today, I directed the Texas Rangers to fully investigate these incidents and identify any potential wrongdoing. Texans deserve a lottery that is fair and transparent for everyone.”

The fallout from last week’s jackpot contributed to the resignation of Texas Lottery Commissioner Clark Smith, Texas Lt. Gov. Dan Patrick threatening to shut down the state lottery if lotto courier services were not banned, and the TLC proposing rules to ban lotto courier services at its scheduled March 4 meeting.

Texas Lottery Commission follows up

The Texas Lottery Commission announced Tuesday it was implementing two “policy-consistent actions” in following up its Monday policy statement. The state agency is expanding its ongoing investigations to include all courier services operating in Texas. The TLC added reviews already in progress “will continue as part of this effort.”

The second action is reducing the amount of lottery terminals at retail sites statewide to five. Any retail location with more than five will have that number immediately reduced to a maximum of five.

“Yesterday’s Policy announcement reflects the Texas Lottery Commission’s unwavering commitment to enforcing lottery regulations by thoroughly investigating lottery courier services and enforcing retail compliance,” said Texas Lottery Commission Executive Director Ryan Mindell. “We are taking decisive steps to uphold the public’s trust and ensure that the lottery operates as intended — in a fair and secure manner.

“Further actions may be taken as investigations progress and measures are enforced.”

These steps have the optics of a direct response to Patrick’s first-person investigation last week when he visited the Winner’s Circle site that sold the winning lotto ticket. He was allowed access to the back room of the store and said “there were terminal after terminal after terminal after terminal, many, many more terminals than you would ever see in the normal place that you buy lottery tickets.”

The Coalition of Lottery Couriers objected to the TLC’s decision to ban lottery courier services, calling Monday’s actions “abrupt, disappointing, and unnecessary” in a statement sent to Lottery Geeks.

DraftKings’ senior vice president, lottery, and founder of Jackpocket, Peter Sullivan, said in a statement to The Closing Line:

“Jackpocket has operated in Texas since 2019 with full transparency and in compliance with guidance from the Texas Lottery Commission. Despite our proven track record of compliance and commitment to responsible gaming, the Texas Lottery Commission has issued a new policy prohibiting our services, effective immediately. As a result, we are suspending lottery courier operations in Texas.

This decision not only limits Texans’ access to the lottery but also directly impacts public education funding. Jackpocket has driven over $550 million in lottery ticket sales in Texas, contributing vital revenue to schools across the state.

We remain dedicated to working with policymakers to ensure access to secure lottery options and working with the Texas Lottery Commission to craft regulations that would allow lottery courier services to continue in Texas.”

The 2023 jackpot front and center again

Abbott’s decision to have the Rangers investigate the April 2023 jackpot will again put the TLC in perhaps an unwanted spotlight. It is believed a foreign group purchased $25.8 million worth of tickets as part of a strategy to win the lotto by reducing the number of unplayed possibilities.

The Texas Lottery Commission faced scrutiny over the method used to win that jackpot as it fulfilled last-minute requests for additional lottery terminals from retailers affiliated with the large buyer. The 2023 jackpot returned to the news cycle last week after the Houston Chronicle reported multiple state lawmakers have seen a video clips of workers trying to process the large order of tickets that also includes “children working at the state-authorized terminals … entering and printing out tickets.”

There is currently legislation to ban lotto couriers, as Rep. Matt Shaheen and Sen. Bob Hall filed identical bills last week.