Texas Lottery concerns: Commission holds meeting amid investigations into courier services

The Texas Lottery Commission held a meeting Tuesday just two weeks after a controversial win in Austin triggered investigations into retail courier services.

Tuesday's meeting

What they're saying:

The new executive director spent his time addressing the issues on Tuesday by focusing on the couriers, not the lottery. 

"The $84 million recent Lotto Texas jackpot, when we believe that there was enough there to say that we need to take action with the lottery retailers over this issue," said executive director Ryan Mindell. 

Mindell has held the position for 11 months after Gary Grief, the former executive director, resigned. Grief and a courier are being accused of money laundering, fraud, and manipulating the outcome of lottery games. However, they denied their involvement.

The other side:

The chief legal officer of a retail courier chose to share his side at the meeting on Tuesday afternoon. 

Rob Porter is the Chief Legal Officer of Lotto.com and Players Cafe. 

"We are very concerned about the lottery's abrupt policy change and proposed rules to prohibit lottery career services in Texas," said Rob Porter. "I ask that you listen to the materials that we give." 

Porter said they have been left out of the discussions surrounding their operations and the future of their business. 

"Before you make rules to policy that harm responsible private businesses that have invested millions of dollars in that state, before you take action and pass rules that jeopardize the jobs of dozens of Texans," said Porter. 

He continued to explain the ripple effects of banning couriers and its impact on companies that follow the law. 

Bills filed in Texas Legislature

Big picture view:

"When the lottery was initially passed, it didn't contemplate these apps and smartphones buying tickets," said state Rep. John H. Bucy III. "It's how 2 million Texans buy lottery tickets right now." 

Bucy has been pushing to pass a bill that would regulate couriers and ensure everyone plays by the rules. 

"I do not think that we should just be an emotional response to saying, there's something bad that's happening with the lottery, or something bad is happening with the couriers, and we're gonna throw out the industry," said Bucy. 

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The conversation about banning the online sale of lotto tickets is something the new executive director of the TLC stated they would do. However, he does not have the authority to make that decision. 

"Forever, the Lottery Commission has told us that they don't have authority to regulate couriers," said Bucy. "Then somehow, overnight, they woke up and said, oh, I now have this authority; I don't know, I don't know who gave it to them. Where did it come from? After years, I'm not having it." 

Texas Lottery scrutiny

The backstory:

The Texas Lottery has been under the microscope after recent controversial wins.

Gov. Greg Abbott directed the Texas Rangers to investigate an $83.5 million winning ticket sold in Austin through a courier this month and a $95 million winning ticket in 2023 that was allegedly made through a bulk purchase.

Attorney General Ken Paxton announced his own investigation into the Texas Lottery Commission as well.

Lt. Gov. Dan Patrick has also publicly called for reforms to the Texas Lottery, especially in regards to couriers.

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