Texas Lottery commissioner resigns shortly after controversial wins draw state officials' scrutiny

AUSTIN, Texas - A Texas Lottery commissioner has resigned his position, just days after the Texas Lottery came under the microscope of state officials.

Clark E. Smith resigned as commissioner as of Friday, Feb. 21, according to the commission.

What we know:

Smith was appointed by Gov. Greg Abbott in 2023 to serve on the commission which controls and supervises the operations of the state lottery and bingo, ensuring that all games are conducted fairly and in compliance with state law.

Smith's term was set to expire on Feb. 1, 2029. Smith is an Austin-based attorney who specializes in administrative and regulatory law with a focus on the alcoholic beverage industry, according to a Nov. 2023 release from the governor's office.

The Texas Lottery Commission has five positions, a Chair and four commissioner spots.

What we don't know:

It is currently unknown what prompted Smith to resign his post or if other commissioners could follow suit.

Dan Patrick's investigation

The backstory:

Smith's resignation comes just days after Texas Lt. Gov. Dan Patrick opened an investigation into the Texas Lottery and a North Austin store that recently sold a winning $83.5 million ticket.

The jackpot was the fifth-largest in the history of Lotto Texas and had been growing since last June. 

The ticket was sold at the Winners Corner TX LLC store on Rockwood Lane, which has seen many lotto-winning tickets, including in December 2024 when someone bought a winning lottery ticket of $2 million and in March 2021 when a Texas Two-Step ticket sold there worth more than $2 million also won.

The business is considered a lottery courier, which allows Texans to buy tickets online, then a courier will send a representative to physically purchase the ticket in person at one of the lottery retailers.

The winning ticket was purchased through an app called JackPocket, which also owns Winners Corner.

Patrick visited the store on Feb. 18 and posted a video on social media of his visit. His video shows a couple of terminals to buy lottery tickets and merchandise tables with board games for sale. Patrick said behind the public part of the store he saw dozens more ticket terminals printing lottery tickets.

DraftKings, the parent company of JackPocket, argues they aren't breaking any laws and that this win was not as a result of a bulk ordering system, where millions of dollars are spent buying nearly all possible number combinations.

Patrick says while a courier service like JackPocket is not illegal, it is not the intent of the state lottery when it began in 1991.

"Do you not see an issue where the public might lose confidence if the courier service somehow happened at this one location in the entire state of Texas sold an $83 million winning ticket, and they also own the location that printed the ticket?" Patrick asked a store employee at Winners Corner.

Other legal disputes over lottery couriers

What we know:

Lottery couriers have been legal in the state since 2019.

On Feb. 14, the Texas Lottery Commission asked the Attorney General's Office if it has the authority to regulate transactions between couriers and customers.

There is also an active lawsuit involving the Texas Lottery Commission.

Former executive director of the Lottery Commission Gary Grief and a courier are being accused of money laundering, fraud, and manipulating the outcome of lottery games. However, they denied their involvement.

Grief's attorney sent a statement:

"Gary Grief served the Texas Lottery Commission as Executive Director for approximately 15 years. He is proud of what he and his dedicated staff accomplished during those years. Gary adamantly denies being part of any dishonest, fraudulent or illegal scheme during his tenure and looks forward to cooperating in any official inquiry addressing the allegations being made."

The current lawsuit has sparked skepticism among people who are following the number of lucky tickets that are bought at these courier lotto stores.

However, the Texas Lottery claims it has "cleaned house."

Texas Legislature steps in

Dig deeper:

Several bills have been filed in the 89th legislative session to amend the current lottery rules. Patrick supported legislation to ban couriers in the last session, but it failed to pass the Texas House.

On Feb. 20, state Rep. Matt Shaheen (R-Collin County) and state Sen. Bob Hall (R-Rockwall) filed identical bills proposing a ban on the sale of Texas Lottery tickets through an app or online.

If passed, the law would take effect on Sept. 1, 2025.

Patrick said it could be the end of the lottery if the bill does not pass. 

"Every 12 years, agencies are up for sunset, in various forms, so this time, the lottery happens to be up for sunset," said Patrick. "If we don't pass the sunset bill before we leave session, the lottery is out of business."

What's next:

The bill, SB 28, was referred to the Senate State Affairs committee.

It will go up for a public hearing on Monday, Feb. 24.

The Texas Lottery Commission is also currently under review by the Texas Sunset Advisory Commission, which regularly assesses the need for state agencies or programs to exist. Each agency or program has a "sunset date", which also serves as a deadline for the Legislature to pass a bill to continue it.

Typically, agencies are renewed on a 12-year basis. The Texas Lottery Commission was last under review during the 83rd legislative session in 2013.

Patrick said it could be the end of the lottery if the bill to ban courier services does not pass. 

"Every 12 years, agencies are up for sunset, in various forms, so this time, the lottery happens to be up for sunset," said Patrick. "If we don't pass the sunset bill before we leave session, the lottery is out of business."

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