Texas Lottery Commission head resigns amid state investigations into controversial wins
Correction & clarification: An earlier version of this story misstated the timeline when the February Austin, Texas lottery winner purchased her ticket through a courier service.
The head of the Texas Lottery Commission has resigned a year after being appointed following state investigations into two controversial jackpot wins that questioned the integrity of the agency.
Executive Director Ryan Mindell announced his resignation effective April 21 in a statement, revealing Chief Financial Officer Sergio Rey has been appointed acting deputy director. The commission board will consider who will permanently assume the leading position at its next meeting scheduled for April 29.
The agency declined to offer additional information on Mindell's resignation, telling Paste BN it does not comment on personnel matters.
In February, Texas Gov. Greg Abbott launched state investigations into two lottery wins, including one this year where a woman purchased a winning ticket through a courier service, an online third-party vendor that purchases tickets on people's behalf.
That same month, the commission banned the use of all courier services, citing a lack of regulatory oversight. In a Feb. 24 news release, the agency accused couriers of selling online ticket orders after determining whether it's a winning ticket through private arrangements with licensed retailers. Mindell warned that lottery retailers would lose their license if they worked with a courier.
"Previously, the agency interpreted its authority as not extending to the regulation or prohibition of these services," Mindell said in the news release. 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."
What are the controversial Texas lottery wins?
Among the wins under investigation is an April 2023 winner who scored a $95 million jackpot by allegedly buying nearly every possible number combination, the governor's office said in February.
More than 25 million unique six-digit combinations were virtually purchased by a company called Rook TX, according to a Houston Chronicle investigation. The company reportedly received a one-time payment of $57.8 million two months later under a Texas law that allows jackpots to be claimed anonymously.
This year, the commission withheld an Austin woman's $83.5 million prize pot after she reportedly purchased the winning ticket on Feb. 17 through the digital courier service. Though the commission did not explain its decision to withhold, it told Paste BN the claim is under review and is the subject of an external investigation.
That win occurred before a new ban on courier services that went into effect a week later. Attorney Randy Howry, who is representing the winner, said his client followed all of the 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?"
Are lottery couriers legal in Texas?
The Texas Senate passed a bill on Feb. 27 banning online lottery ticket sales and stopping third-party services from selling tickets, but the measure is still awaiting a vote from the House, the Texas Tribune reported.
Lawmakers have also threatened to shut down the lottery after alleging it failed to operate lawfully and with integrity. The state House and Senate are in the midst of determining a final version of two-year state budget that will determine how much money the commission would receive and whether its enough to keep the agency operational.
"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 February 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."
(This story was updated to include video.)