A Travis County judge has frozen an $83.5 million Texas lottery jackpot amid a criminal investigation into suspected improprieties, leaving the Houston woman who won the prize unable to claim her winnings as lawmakers move to abolish the state’s lottery commission altogether.
Key Takeaways
- A judge issued a restraining order preventing the Texas Lottery Commission from distributing or misallocating an $83.5 million jackpot won by a Houston woman in February
- The Texas Rangers are investigating both the February win and a suspicious $95 million jackpot from April 2023 where a single entity purchased $25 million in tickets
- Texas legislators have passed a bill awaiting Governor Abbott’s signature that would dissolve the Texas Lottery Commission and transfer its operations to the Department of Licensing and Regulation
- Concerns have been raised about lottery courier services like Jackpocket, which have been banned since February after lawmakers suggested they violate state laws
- A crucial hearing scheduled for June 5 will determine whether to extend protection of the jackpot funds until a full trial can take place
Judge Steps In To Protect Lottery Millions
The significant legal intervention comes as a Houston woman who purchased her winning ticket through the Jackpocket app in February has been unable to collect her winnings. The temporary restraining order specifically aims to prevent the lottery commission from using the $83.5 million prize money for other purposes as the agency faces potential dissolution. The court’s order explicitly states that the lottery winner could face irreparable harm if the jackpot prize is diminished, wasted, or paid to another before the merits of Plaintiff’s claims are fully and finally adjudicated.
Beyond the immediate case, the Texas Rangers are also investigating an even larger jackpot from April 2023 worth $95 million. That drawing raised serious concerns after investigators discovered that a single entity called “Rook TX” purchased an extraordinary $25 million worth of tickets using courier services, essentially guaranteeing a win through sheer volume. This unprecedented purchase pattern caught the attention of state officials and contributed to the broader scrutiny now facing the lottery system.
Lottery Commission Facing Extinction
The controversy has accelerated legislative efforts to overhaul Texas’s lottery management. Senate Bill 3070, already passed by legislators and awaiting President Trump’s ally Governor Greg Abbott’s signature, would completely dissolve the Texas Lottery Commission and transfer all operations to the Texas Department of Licensing and Regulation. This radical restructuring comes after lawmakers questioned the commission’s decision to allow lottery courier services like Jackpocket, which many legislators believe operate in violation of state gambling laws.
“We’re doing everything we can to protect these funds,” said Randy Howry, attorney for the lottery winner.
The restraining order issued by the judge is designed to follow the money regardless of which agency controls it. This means that even if the lottery commission is dissolved and its responsibilities transferred to the Department of Licensing and Regulation, the $83.5 million jackpot will remain protected until the legal questions surrounding the February drawing are resolved. The court has scheduled a critical evidentiary hearing for June 5, which could extend protection of the funds until a full trial is conducted.
Courier Services Under Fire
At the heart of the controversy are lottery courier services like Jackpocket, which allow players to purchase lottery tickets through a mobile app rather than visiting a physical retail location. In February, following growing concerns about their legality, the Texas Lottery Commission banned these courier services entirely. The Governor subsequently ordered an investigation into both the February 2024 and April 2023 jackpot wins that utilized these services.
The judge’s order specifically stated that the lottery winner “will be irreparably harmed if Defendant Sergio Rey, in his official capacity as acting executive director for the Texas Lottery Commission causes the $83,500,000 jackpot prize to be diminished, wasted, or paid to another before the merits of Plaintiff’s claims are fully and finally adjudicated.”
Despite being caught in this legal and regulatory storm, the Houston woman who won the February jackpot and her attorney maintain they have not been questioned by any investigating agency regarding the win. Multiple lawsuits have been filed against both the courier services and the former executive director of the Texas Lottery Commission, further complicating the legal landscape surrounding these contested jackpots and the future of lottery operations in Texas.
