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Read MoreA person won $83.5 million in the Lotto Texas drawing on Monday night, but faith in the Texas Lottery is presently so diminished that residents are doubting the legitimacy of the victory.
Trust in the lottery has declined since April 2023, when a mysterious European lottery syndicate claimed a $95 million jackpot by purchasing 25.8 million tickets, sufficient to encompass all potential winning combinations. To accomplish this, they utilized online lottery delivery services.
The integrity of the lottery faced further scrutiny following a widely reported class-action lawsuit initiated last week by self-designated lottery advocate Dawn Nettles, who is the creator of LottoReport.com.
In her lawsuit, Nettles alleges that former Texas Lottery CEO Gary Grief “fraudulently” established the framework for a “criminal conspiracy” that permitted the European syndicate to manipulate the system – primarily, by promoting lottery courier services to function in Texas.
The state’s Lt. Gov., Dan Patrick, reflects the public’s uncertain trust in the lottery commission and has warned he will eliminate the lottery entirely if online courier services are not quickly banned.
The ticket that won on Monday was bought through a lottery courier known as Jackpocket.com, which is owned by DraftKings.
These companies enable Texans to select their numbers and purchase tickets via an app. The courier will carry out the ticket order by acquiring them from an authorized physical lottery retailer. The courier scans the tickets and returns them to the customer.
Due to the high volume of tickets handled by lottery couriers, they rely on licensed retailers who are specifically equipped with sufficient lottery terminals to meet these large demands. The delivery service might also possess such establishments.
Patrick visited the outlet that handled Monday’s winning ticket, Winner’s Corner in Austin, and discovered it was unlike a typical convenience store. Instead, it contained “rows and rows” of lottery terminals that were “simply churning out tickets.”
Due to Texas Lottery regulations, a licensee cannot solely engage in selling lottery tickets; thus, this establishment also offers board games.
“This is a mess, and if people don’t have confidence in the lottery, they’re going to stop playing,” Patrick told The American-Statesman this week. “And right now, as lieutenant governor of the state of Texas, I have no confidence in the lottery.”
Patrick thinks the Lottery Commission has fostered these circumstances by permitting lottery couriers without the clear consent of the legislature.
In a press release, DraftKings announced that the victorious ticket was bought via the Jackpocket.com app by a frequent player from Texas who selected their own numbers. It wasn't included in a large purchase by a clandestine organization.
Furthermore, it was not outright unlawful for the syndicate to purchase all the potential combinations in 2023. One could say that those troublesome Europeans were simply clever in taking advantage of a loophole. They purchased an enormous number of tickets (valued at $25.8 million while the typical amount is about $2 million per draw), the earnings of which are allocated to support education and various beneficial causes.
Although not explicitly against the law, critics argue that the syndicate's behavior was unjust to other participants, specifically the regular Texans who purchased their tickets without knowing their minuscule odds of winning. Patrick thinks the syndicate’s strategies did not align with the essence of the law that established the lottery 34 years back.
A measure aimed at banning lottery couriers was approved by the state Senate last year, but ultimately did not succeed in the House. Patrick promised that the identical bill would be approved this year.
What if it doesn’t?
“The lottery is out of business,” he warned.
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