Class action lawsuit, money laundering, theft following Texas Lottery scandal
The aftermath of the Texas Lottery scandal has led to a class-action lawsuit, accusations of money laundering, and the possibility of millions of dollars being stolen. Recently, the Texas Senate took action by banning lottery couriers from operating within the state after a series of hearings uncovered multiple issues with the Texas Lottery Commission (TLC).
Lawmakers accused the TLC of engaging in money laundering activities and connected these illicit actions to the potential theft of around $200 million, sparking various investigations from all branches of the state government. According to Sen. Bob Hall, R-Edgewood, the passage of SB 28, a bill that prohibits lottery couriers in Texas and prevents the sale or purchase of lottery tickets online, aims to address these pressing concerns.
Lt. Gov. Dan Patrick reacted to the passage of this bill by emphasizing the increased scrutiny on the TLC in the past weeks and their failure to restore public trust in their practices. The pivotal moment leading up to this action was in April of 2023 when an overseas group purchased 26 million $1 lottery tickets for the Lotto Texas game that had a $95 million jackpot. These tickets were acquired within 72 hours of the winning numbers being announced, a move facilitated by the TLC through various courier locations, one of which lacked experience in ticket printing.
Subsequent to this incident, both Gov. Greg Abbott and Lt. Gov. Patrick urged the Texas Rangers to conduct a thorough investigation into the misconduct of the entire TLC dating back to 2016. This inquiry aims to scrutinize the significant alteration in lottery operations introduced by the TLC, which involved the introduction of couriers to buy and print tickets for individuals via a phone application.
During a Senate Finance Committee hearing, State Sen. Paul Bettencourt raised serious concerns regarding the possibility of money laundering within the Texas Lottery system. In a sharp exchange with Ryan Mindell, the executive director of the Texas Lottery, Bettencourt pressed for clarification on the suspicious activities at play. Mindell remained evasive, neither confirming nor denying the probability of money laundering occurring within the lottery system, despite the overwhelming amount of evidence suggesting financial misconduct.
The passage of SB 28 by the Texas Senate is a significant step towards reforming the Texas Lottery and preventing further exploitation of the system. By eliminating lottery couriers and restricting online ticket purchases, the state aims to restore public confidence in the lottery system and ensure that similar incidents of fraud and theft are prevented in the future.
