A Houston woman’s $83.5 million Lotto Texas jackpot has been frozen by court order as the Texas Rangers investigate potential lottery fraud, leaving the winner empty-handed while officials consider disbanding the entire Texas Lottery Commission.
Key Takeaways
- A Travis County judge has issued a restraining order freezing an $83.5 million jackpot amid investigations by Texas Rangers into potential misconduct.
- Lawmakers are pursuing legislation to dissolve the Texas Lottery Commission and transfer operations to the Texas Department of Licensing and Regulation.
- The February 2024 jackpot and a separate $95 million prize from April 2023 are both under scrutiny for possible irregularities involving lottery courier services.
- The lottery winner’s attorney fears the jackpot funds could be depleted for other expenses as the commission faces potential dissolution.
- An evidentiary hearing scheduled for June 5 will determine if further financial protections are needed until the case is resolved.
Court Freezes Massive Lottery Jackpot
A Travis County judge has halted the release of an $83.5 million Lotto Texas jackpot won by a Houston woman in February, amid serious concerns about potential lottery fraud. The temporary restraining order prevents the Texas Lottery Commission from spending or transferring the funds until legal proceedings determine the rightful disposition of the prize money. The judge determined 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.”
The court’s action comes as the Texas Rangers conduct investigations into both the February 2024 jackpot and another substantial prize from April 2023 worth $95 million. The probes were initiated after Governor Greg Abbott ordered a thorough examination of both wins following concerns about the integrity of the lottery system. Randy Howry, attorney for the jackpot claimant, emphasized the urgent need to protect these funds, stating, “We’re doing everything we can to protect these funds.”
Legislative Overhaul Looms
The controversy extends beyond the disputed jackpots to the very structure of Texas lottery governance. Senate Bill 3070, which has passed the legislature and awaits Governor Abbott’s signature, would completely dissolve the Texas Lottery Commission and transfer all operations to the Texas Department of Licensing and Regulation (TDLR). This dramatic restructuring reflects growing concern among lawmakers about the commission’s oversight practices and transparency. The restraining order is expected to remain in effect even if the commission is disbanded, ensuring the disputed funds remain protected regardless of which agency holds responsibility.
“We’re doing everything we can to protect these funds,” said Randy Howry, attorney for the jackpot claimant.
Legal representatives for the Houston winner are particularly concerned that during this transition period, the jackpot funds could be misappropriated or depleted for other expenses. The temporary restraining order specifically aims to prevent such scenarios until the plaintiff’s claims are fully resolved. An evidentiary hearing scheduled for June 5 will determine whether additional protections should be extended through a temporary injunction that would remain in place until trial.
Lottery Courier Services Under Fire
At the heart of the investigation is the role of lottery courier services, which lawmakers believe may violate state gambling laws. The Houston woman purchased her winning ticket through the Jackpocket app, a lottery courier service that buys tickets on behalf of customers. The Texas Lottery Commission banned such services in February 2024, but only after the controversial jackpots had been claimed. Even more suspicious was the April 2023 jackpot, where an entity called Rook TX used courier services to purchase over $25 million in tickets, virtually guaranteeing a win for the $95 million prize.
The investigation has already triggered multiple lawsuits against both the courier services and the former executive director of the Texas Lottery Commission. Despite the extensive investigation, the Houston winner and her attorney maintain they have not been questioned by any agency regarding the February win, suggesting they may be caught in broader systemic issues rather than personal wrongdoing. As the legal battle unfolds, millions in winnings remain in limbo while Texas officials reconsider the entire framework of the state’s lottery system.
