Texas Lotto jackpot questions lead lawmakers to call for action

AUSTIN (KXAN) — State lawmakers called for leaders of the Texas Lottery Commission to take action to ban services that let players buy tickets through courier services. The issue came up Wednesday as commission leaders testified before the Senate Finance Committee.

Several senators on the committee asked questions related to a $95 million Lotto Texas jackpot from April 2023. A Houston Chronicle investigation revealed a group of wealthy investors spent more than $25 million to buy tickets with virtually all of the possible number combinations. The report found that the Lottery Commission provided extra terminals to businesses that worked with the investors, allowing them to process millions of tickets in just a few days.

The commission changed its policies after the investigative report, limiting how terminals were deployed. But at Wednesday’s hearing, lottery leaders told lawmakers they did not have the power to ban players from buying through courier services.

Lawmakers were skeptical.

“I’m not buying what you’re selling,” State Sen. Charles Perry told Lottery Commission Executive Director Ryan Mindell. Perry noted that the Commission made a rule change in 2020 that made it possible for people to buy tickets electronically, which opened the door to mass ticket purchases through courier services.

“Don’t tell us you couldn’t have fixed it, because you missed your window and you actually created a problem we have today by rule,” Perry said.

The jackpot win raised questions for some about fairness of the lottery. But lawmakers also raised questions about the potential for enabling criminal acts.

“This is 99% probability money laundering. True?” State Sen. Paul Bettencourt, R – Houston asked Mindell.

“I couldn’t commit on that,” Mindell responded.

“Well you need to be able to commit, because you need to be able to say what are the obvious signs? Because normal consumers don’t go buy $25 million of $1 tickets,” Bettencourt fired back, thumping his fist on the desk for emphasis.

Senators also raised concerns that allowing electronic sales of lottery tickets could allow underage people to buy tickets.

“How do you prevent the courier from selling a ticket to a minor?” State Sen. Bob Hall, R – Rockwall asked Mindell.

“Senator, that’s a great question, and I think that it’s something that we take very seriously,” Mindell responded.

“Don’t you think that’s serious enough to give you a reason not to use the couriers? By using them, you’re facilitating minor gambling,” Hall retorted.

Mindell maintained that the commission did not have authority to take action against courier services.

“It’s up to this body to determine which tack they want to take, but we would very much appreciate the help in giving us the regulatory tools to take action in this case,” Mindell said.

Senators maintained that the commission did have the authority to act. Some suggested seeking an opinion from the Texas Attorney General to clarify what authority they have.