Texas Lottery Winner Sues Over $95M Jackpot Fraud

A Texas lottery player has filed a lawsuit claiming he was cheated out of $95 million in a recent Lotto Texas jackpot win, alleging a conspiracy involving lottery retailers and a sports betting company.

Key Takeaways:

• Texas lottery winner sues over alleged $95 million jackpot fraud
• Lawsuit claims retailers and sports betting company rigged drawing
• Case raises questions about integrity of Texas Lottery Commission

The world of lottery wins often brings tales of joy and life-changing fortunes. However, a recent case in Texas has taken a darker turn, casting a shadow over the integrity of the state's lottery system.

Jerry B. Reed of Hood County, Texas, who won a $7.5 million Lotto Texas jackpot on May 17, 2023, has filed a lawsuit in Travis County. Reed alleges that his prize was significantly diminished due to a conspiracy involving lottery retailers and a London-based sports gambling company. The lawsuit claims these entities rigged a lottery drawing less than a month before Reed's win, resulting in a $95 million jackpot for a group known as Rook TX.

The lawsuit names four lottery retailers - Lottery.com, Lottery Now, Inc., ALTX Management, LLC, and Qawi and Quddus, Inc. - along with sports gambling company Colossus Bets as defendants. Reed's legal action seeks to recover funds he claims were "fraudulently and illegally obtained" by the defendants.

According to the lawsuit, the defendants orchestrated a bulk purchasing event, buying over $25 million worth of lottery tickets to cover nearly all possible number combinations. This strategy allegedly almost guaranteed a jackpot win. The suit further claims that the retailers used custom-designed software and counterfeit QR codes to circumvent the normal ticket purchasing process.

The case has attracted attention from state lawmakers, with Texas Governor Greg Abbott directing the Texas Rangers to investigate this win and a more recent lottery win in February 2024. The Texas Lottery Commission is currently under Sunset review, a process where state lawmakers must decide whether to continue or end the lottery.

Lt. Gov. Dan Patrick expressed concerns about the lottery's integrity, stating, "We can not renew the Lottery Commission if we can't trust it." This sentiment underscores the potential far-reaching implications of Reed's lawsuit on the future of the Texas lottery system.

As this legal battle unfolds, it serves as a reminder of the complex issues surrounding lottery operations and the importance of maintaining public trust in these systems. The outcome of this case could have significant repercussions for lottery players and operators alike, potentially reshaping the landscape of state-run lotteries in Texas and beyond.