After rule change, an $83.5 million lottery jackpot is being withheld from Texas winner
Texas Lottery officials are withholding a recent winner's $83.5 million jackpot following a new ban on online third-party vendors that launched after she purchased her winning ticket through one.
A woman, whose identity has not been shared, reportedly purchased the winning ticket in Austin on Feb. 17 through the digital courier service Jackpocket, according to local station KXAN. A courier is a service that purchases lottery tickets on a customer's behalf online while charging a service fee.
Last month, Texas Lieutenant Gov. Dan Patrick posted a video on X where he said the massive jackpot win raised questions on the integrity of the state lottery and visited Winner’s Corner, an Austin game store where it was sold. In the video, he pointed out that the Winner’s Corner is owned by sports betting company Draft Kings, which also owns Jackpocket.
"It just so happened — and coincidences happen, strange things happen all the time — but a winning ticket, one of the biggest lottery prizes ever, was sold at this store to a courier for $83 million," Patrick said in the video while on the phone with a Jackpocket attorney.
However, Winner's Courier is licensed by the TLC, making the sale entirely legal despite the concerns Patrick flagged. Here's what to know about the win and the controversy that's followed.
Why is Texas Lottery banning courier services?
Last month, the Texas Lottery Commission announced a ban that would prohibit anyone from purchasing tickets through courier services arguing there is no regulatory oversight over them. In a Feb. 24 news release, the commission accused couriers of selling online ticket orders after determining whether it's a winning ticket through private arrangements with licensed retailers.
Texas Lottery Commission Executive Director Ryan Mindell said the services are not only concerning for stakeholders, but fail to comply with legal regulation and to maintain public trust. He warned that any lottery retailer who works with or assists a courier service will lose their license.
"Previously, the agency interpreted its authority as not extending to the regulation or prohibition of these services. Since I became executive director less than a year ago, I have been keenly focused on making changes to improve the public’s perception of Texas Lottery games and how they are played and operated," Mindell said in the news release.
What has the lottery winner said?
Attorney Randy Howry, who is representing the Austin woman, said her client followed all of Texas Lottery Commission's rules when she purchased the winning ticket through the Jackpocket app, according to People Magazine.
"She did everything the right way," Howry told People. "If you allow a person to play by your rules and they win and you refuse to pay 'em, then why would anyone play the Texas lottery going forward?"
The women purchased $20 worth of tickets through the Jackpocket app which she previously used for other lottery tickets and scratch off's without any issue, the Austin American-Statesman reported. She told the newspaper she's gone from stress, sadness and frustration to anger as she's done nothing illegal or unethical.
The Texas Lottery Commission has not explained why the prize pot is being held, but told Paste BN the claim is under review and is the subject of an external investigation.
What has the lottery courier service said?
Despite operating in Texas since 2019, Jackpocket has suspended its state operations to comply with a recent ban on all courier services. In a statement to Paste BN, the company said it has long complied with the TLC guidelines and been fully transparent about its operations.
The service said the ban will also limit public education funding as Jackpocket has driven over $550 million in Texas lottery ticket sales, which contribute 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," DraftKings Lottery Senior Vice President Pete Sullivan said in a statement.
State investigates other courier lottery wins
Texas Gov. Greg Abbott launched state investigations last month into two lottery wins including the controversial ticket sold in northwest Austin.
The state is also looking into an April 2023 winner who won $95 million by allegedly buying nearly every possible number combination, the governor's office said in a Feb. 24 news release.
"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 the news release. "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."
Are lottery couriers legal in Texas?
On Feb. 27, the Texas Senate put an end to couriers in the state with a bill banning online lottery ticket sales and stopping third-party services from selling tickets, the Texas Tribune reported. State Sen. Bob Hall, who co-authored Senate Bill 28, said the move will also end illegal ticket sales to minors or out-of-state customers.
"SB 28 will not restore integrity to the Texas lottery — I don't even know if that's possible," Hall said, according to the Tribune. "But it will reiterate the responsibility we have given the commission to ensure lottery couriers and their licensed retail outlets are no longer able to operate in the state in language even they should be able to understand."
Jackpocket is the official digital lottery courier of the Paste BN Network.