The Lt. Governor of Texas, Dan Patrick, has started investigating an alleged case of lottery fraud. The winning lottery ticket won more than $83 million and was sold at a store in North Austin. The Lt. Governor has long been vocal about abolishing regulated sports betting in the state, and now, amid reports of lottery fraud, he has also set his sights on state lottery services and couriers.

The Texas Lottery is facing growing scrutiny as an active lawsuit and allegations of fraud threaten its credibility. Lt. Gov. Dan Patrick has raised concerns over the legality of lottery couriers and their role in recent lottery transactions, following the sale of an $83.5 million winning ticket at a North Austin retailer.

Suspicion surrounding the Texas Lottery

The controversy centers around a winning Lotto Texas ticket sold at Winner's Corner, a well-known lottery retailer on Rockwood Lane. The jackpot, one of the largest in Texas history, has led to increased attention regarding the fairness and transparency of lottery operations. Lt. Gov. Patrick voiced concerns over the integrity of the system, particularly regarding the role of courier services that facilitate online lottery purchases.

The winner, who has chosen to remain anonymous, matched all six numbers in the drawing: 19, 21, 25, 45, 47, and 52. The $83.5 million jackpot was the fifth-largest in the game's history. According to Peter Sullivan, Senior Vice President of Lottery at DraftKings, the winner spent $20 on ten games the night of the draw.

However, the ticket's purchase location and the involvement of a courier service have drawn scrutiny, fueling an ongoing lawsuit against the Texas Lottery Commission. The lawsuit alleges manipulation of lottery outcomes, fraud, and money laundering, further shaking public confidence in the system.

The legality of lottery couriers in question

Lottery courier services, such as Jackpot and DraftKings, allow players to purchase tickets online or through mobile apps. Once an order is placed, couriers buy physical tickets from licensed retailers and provide digital copies to customers.

Peter Sullivan defended the practice, stating, "There is a misconception that Jackpot, as a courier, is buying all these tickets for itself. We are buying them on behalf of customers, who have been age and geo-verified and are playing the games on an individual basis, not a bulk purchase basis." Jackpot and DraftKings are not involved in the lawsuit.

Despite this, the allegations remain. The lawsuit targets the Texas Lottery Commission's former Executive Director, IGT Solutions Corporation, Rook Tx LP, and Lottery.com, accusing them of manipulating lottery outcomes and money laundering through courier services. The winning ticket's purchase through a courier has intensified these concerns.

Lt. Gov. Patrick's investigation and legislative push

Lt. Gov. Patrick has questioned the ethics and legality of courier services. Jackpot, which acquired DraftKings' lottery business in May of 2024, also owns Winner's Corner, the store that sold the winning ticket.

People buy lottery tickets at convenience stores, not specialty stores that primarily sell board games, noted Patrick, referring to a state law requiring lottery retailers to sell multiple items. He expressed concerns that a single retailer, owned by a courier service, issued the winning ticket, potentially eroding public trust in the lottery system.

In a video posted on X, Patrick questioned the fairness of a courier service facilitating the winning transaction at its own retail location. "Do you not see an issue where the public might lose confidence if the courier service, which owns the retail store, sold an $83 million winning ticket?" he asked.

Patrick is now pushing for legislative action to ban lottery courier services entirely. He stated that they passed a bill last year to ban couriers, and it passed 29-to-2 in the Senate, but it died in the House. "We're going to pass that same bill again," he concluded.

Potential end of the Texas Lottery?

The future of the Texas Lottery hangs in the balance as lawmakers revisit the issue. Every state agency undergoes a 'sunset' review process every 12 years, and the Texas Lottery is currently up for renewal. "If we don't pass the sunset bill this session, the Texas Lottery will be out of business," Patrick warned.

This could have significant implications for Texas, as the lottery generates substantial revenue for education and other public programs. Patrick's firm stand on banning couriers suggests that without legislative action, the entire lottery system could be in jeopardy.

Top retailer under the spotlight

Winner's Corner, the store that sold the winning ticket, has long been the top lottery retailer in Texas. In 2023, it recorded over $127 million in sales, significantly outperforming its closest competitor, Round Rock's Luck Zone, which sold nearly $100 million less.

Despite its success, Patrick remains skeptical, noting that Winner's Corner "doesn't look like a typical lottery retailer." Its connection to Jackpot has further fueled suspicions that lottery operations may not be as transparent as they appear.