In the ongoing drama regarding lottery courier services in Texas, Lotto.com has decided to sue the Texas Lottery Commission over its denial of the legality of lottery couriers in the state. Lotto.com is seeking intervention in the case of the proposed new rules that would effectively ban lottery couriers in Texas, as former Executive Director Ryan Mindell also resigns from his post.

The ongoing drama between the Texas Lottery Commission, lottery couriers, and the fallout from a suspected rigged lottery drawing escalated further this week as Lotto.com filed a lawsuit against the TLC. The suit, lodged in Travis County Court, seeks to block newly proposed rules that would prohibit lottery couriers from operating in Texas.

At the center of the dispute is former Executive Director of the TLC, Ryan Mindell, who abruptly resigned earlier this week. Lotto.com claims that Mindell's sudden rule change contradicts years of prior guidance from the commission, leaving couriers blindsided.

TLC previously approved courier operations, suit says

In its lawsuit, Lotto.com argues that the TLC repeatedly assured them that courier operations were legal under state law. The company submitted a series of exhibits, including correspondence from Mindell himself, confirming Lotto.com's legal standing.

A key piece of evidence is a 2021 letter from Mindell, then the TLC's director of operations, explicitly stating that Lotto.com could operate in Texas without regulatory oversight. Mindell clarified that couriers merely facilitate the delivery of lottery tickets and do not sell them directly, thus operating outside the TLC's jurisdiction. A similar approval letter was also issued to another courier, Jackpot.com, reinforcing Lotto.com's position.

QR code dispute sparks new tensions

Despite these assurances, Lotto.com said tensions reignited in February of 2025 when TLC officials conducted a brief, five-minute inspection of Players Cafe, a retailer working with Lotto.com. Following the visit, TLC sent a show-cause letter to Players Cafe, citing noncompliance over the use of a QR code.

According to Lotto.com, the QR code at issue was identical to one supplied by IGT, a major lottery technology provider, and previously disclosed to the TLC. The company contends that this accusation was part of a rushed campaign against couriers, spearheaded without following proper regulatory procedures.

The lawsuit also criticizes the TLC for allegedly sidestepping state-mandated rulemaking processes. According to Lotto.com, the commission introduced, approved, and began enforcing new rules banning couriers within a two-day span - far shorter than the 30-day public notice required for new regulations under Texas law.

Jackpot scheme intensifies scrutiny of couriers

Public scrutiny of lottery couriers intensified after a 2023 newspaper investigation revealed a scheme where nearly all possible ticket combinations were purchased to guarantee a jackpot win. The strategy yielded a $95 million prize and prompted further concern when an $83 million jackpot followed shortly after.

Although politicians, including Lt. Gov. Dan Patrick, called for stricter controls on lottery couriers, Lotto.com's lawsuit asserts that couriers were not involved in the jackpot manipulation. Instead, Lotto.com claims TLC officials, including Mindell, mishandled internal controls - such as improperly approving a retailer's request for more than 20 additional sales terminals.

In fact, Lotto.com CEO Thomas Metzger reportedly warned TLC and IGT officials about the risks associated with the extra terminals. Despite their concerns, TLC staff proceeded, and Mindell later admitted this was a "mistake."

The suit also reveals text messages between Metzger and former TLC Executive Director Gary Grief. In one message, Grief invited Metzger to Austin to discuss group purchasing practices and the threat of jackpot "buyouts." Grief himself is now facing separate allegations in a different lawsuit, where he is accused of aiding the jackpot scheme.

Couriers demand fair regulation

As Lotto.com's lawsuit progresses, the Coalition of Texas Lottery Couriers issued a statement condemning the TLC's recent actions. "It is time to reconsider the agency's politically motivated decisions regarding lottery couriers and restart good faith collaboration between our companies and fresh leadership at the TLC," the group said. It continued that lottery couriers remain committed to operating within a regulatory framework that protects the integrity of the Texas Lottery while allowing millions of Texans a safe and convenient way to purchase tickets.

The TLC is scheduled to meet on April 29 to discuss formally adopting new rules concerning couriers, a decision that could have major implications for the future of online lottery services in Texas.