Texas Lottery Chief Steps Down Amid State Probe Into Questionable Wins

Corrections and clarifications: A previous version of this article incorrectly reported the timing of when the lottery winner from February in Austin, Texas, bought her ticket using a delivery service.

The head of the Texas Lottery Commission stepped down a year after taking office, following state inquiries into two contentious lottery jackpots that cast doubt on the organization's credibility.

Executive Director Ryan Mindell He declared his resignation, set to take effect from April 21, in an official statement, indicating that Chief Financial Officer Sergio Rey has been named as the acting deputy director. The commission board plans to deliberate over who will fill the role permanently during their upcoming meeting on April 29.

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The agency chose not to provide further details regarding Mindell's departure, informing USA TODAY that they do not discuss personal employment issues.

In February, Texas Gov. Greg Abbott Initiated state inquiries into two lottery victories, including one earlier this year wherein a woman obtained a winning ticket via a courier service—an entity acting as an online third-party agent for purchasing tickets.

In the same month, the commission prohibited the utilization of all courier services, pointing to inadequate regulatory supervision as their reason. Feb. 24 news release The agency alleged that couriers were selling online ticket orders after verifying if they were winners via secret agreements with authorized retailers. Mindell cautioned that lottery retailers could have their licenses revoked if they collaborated with these couriers.

“Earlier, the agency believed its jurisdiction did not cover the oversight or restriction of these services,” Mindell stated in the press release. “Since taking up my position as executive director just under a year ago, I have prioritized efforts to enhance the public’s view of Texas Lottery games and their operation.”

What are the contentious wins in the Texas Lottery?

One of the winnings being looked into involves a March 2023 victor who reportedly claimed a $95 million prize after purchasing almost all potential number combinations, according to statements made by the governor’s office in February.

A firm named Rook TX reportedly acquired over 25 million distinct six-digit combinations through virtual means, as stated by the report. Houston Chronicle investigation The firm apparently got a single payout of $57.8 million around two months afterward thanks to a Texas statute permitting winners to claim prizes without revealing their identities.

This year, the commission withholding an Austin woman's $83.5 million jackpot After allegedly buying the winning ticket on February 17 via the digital delivery platform, the commission chose not to disclose their reasons for withholding information. They informed USA TODAY that the claim is currently under review and is part of an ongoing external investigation.

The victory happened prior to a recent restriction on courier services that came into play a week thereafter. Attorney Randy Howry, who represents the victor, stated that his client adhered to every one of the Texas Lottery Commission’s guidelines when purchasing the winning lottery ticket via the Jackpocket application, as per reports. People Magazine .

Howry explained to People, 'She followed all the proper procedures.' He added, 'If someone wins according to your own regulations but you decide not to honor the payout, then why would anybody choose to participate in the Texas lottery in the future?'

Is it lawful for lottery couriers to operate in Texas?

On February 27th, the Texas Senate approved legislation aimed at prohibiting online lotto ticket purchases as well as halting third-party entities from vending these tickets; however, this proposal remains pending approval from the House. Texas Tribune reported.

Legislators have similarly warned about potentially shutting down the lottery following accusations that it did not function legally and ethically. Currently, members of both the state House and Senate are working towards agreeing upon a finalized version of the biennial state budget. This document will outline the amount of funding allocated to the commission and assess whether this sum is sufficient for maintaining the agency’s operations.

Residents of Texas should have confidence in their state’s lottery system and understand that it operates with honesty and within legal bounds," Abbott stated in the news release from February. "I instructed the Texas Rangers to thoroughly examine these occurrences and pinpoint any possible misconduct. The people of Texas merit a lottery that is equitable and open to all.

(The narrative has been refreshed to incorporate a video clip.)

The article initially appeared on USA TODAY: Head of Texas Lottery Commission steps down as state probes look into suspicious winnings.