Texas Lottery Faces Scrutiny Amid Rigging Allegations
The Texas Lottery is under intense scrutiny following allegations of jackpot rigging and potential money laundering schemes. A high-profile lawsuit involving a disputed $95 million jackpot has taken a surprising turn, raising further questions about the integrity of the state-run lottery system.
Judge Melissa Andrews of Texas’ Business Court has remanded a lawsuit back to a Travis County district court. The lawsuit centers around Jerry Reed's $7.5 million Lotto Texas jackpot in May 2023 and Rook TX—a New Jersey-based company—claimed a $95 million jackpot after allegedly misrepresenting its date of formation in violation of Texas law.
Lieutenant Governor Dan Patrick previously described the Texas Lottery as “probably the biggest money laundering scheme in the country,” highlighting the severity of the concerns surrounding the lottery's operations.
According to court documents, Reed’s legal team is asserting that he is entitled to the $95 million, and is simultaneously attempting to expose a potential money laundering scheme.
The Texas Lottery Commission itself faced near abolishment during the state’s regular legislative session due to these controversies. Lawmakers raised concerns about the multimillion-dollar jackpots won in 2023 and 2025, leading to investigations and resignations. These concerns culminated in Senate Bill 3070, which resulted in the Texas Department of Licensing and Regulation taking over the lottery's operations.
The transition aims to provide greater oversight and accountability. While most employees will remain in their current roles, the change in leadership is intended to address the issues that have plagued the lottery in recent years. The TDLR will now oversee the $8 billion operation, ensuring it generates revenue for Texas’ public schools while maintaining integrity and transparency.
The case continues to develop and its progress is expected to reveal more about the Texas Lottery and whether safeguards are in place to prevent fraud.