Texas Lottery shake-up: Commissioner resigns amid courier service controversy
Just days after the Texas Lottery came under the microscope of state officials, Texas Lottery Commissioner Clark Smith has resigned from his position. His resignation, effective 21 February 2025, comes amid growing concerns over the use of third-party lottery couriers and recent jackpot wins.
A major factor in the scrutiny surrounding the Texas Lottery was an $83.5 million win in Austin. The winning ticket for ‘Lotto Texas Extra!’ was purchased through Jackpocket, a lottery courier app owned by DraftKings. Lottery couriers allow users to buy tickets online, with the physical purchase made by a courier at a licensed retailer.
A jackpot-winning ticket for tonight’s #LottoTexas drawing worth an estimated annuitized $83.5 MILLION was sold in #Austin!
— Texas Lottery (@TexasLottery) February 18, 2025
#Texas #TexasLottery pic.twitter.com/OLzHT2hS4S
Though couriers have been in operation since 2016, lawmakers, including Lt. Gov. Dan Patrick, have recently questioned their regulation. Patrick criticised the system and said, “The bottom line is, if people are going to have confidence in the lottery, we have to be sure that no one has an advantage. This is not the way the lottery was designed to operate.”
Legal and legislative reactions
North Texas State Rep. Matt Shaheen (R-Plano) has even introduced a bill aimed at banning lottery couriers, citing concerns over regulatory gaps. Meanwhile, the Texas Lottery Commission (TLC) has stated that it can only regulate physical retailers, not online services.
During a Texas Senate Finance Committee hearing, lawmakers scrutinised lottery officials over the role of couriers. Senators also raised concerns over a past $95 million jackpot in 2023, where courier services were reportedly involved in printing nearly every possible ticket combination.
TLC officials confirmed they lack the authority to regulate couriers but have since addressed loopholes that allowed bulk purchases. Patrick himself visited the Winners Corner store in Austin, where the latest jackpot-winning ticket was sold and posted a video on social media of his visit.
Recently, there have been many questions raised about the integrity of the Texas Lottery. Last night, an $83 million winning ticket was sold in Austin. Turns out, the retail establishment that sold the winning ticket in the front of the store was owned by the courier service that… pic.twitter.com/i4MyR2wQXd
— Office of the Lieutenant Governor Dan Patrick (@LtGovTX) February 19, 2025
His video shows a couple of terminals to buy lottery tickets and merchandise tables with board games for sale. Patrick said that behind the public part of the store, he saw dozens more ticket terminals printing lottery tickets. He further noted that DraftKings owns both Jackpocket and Winners Corner, raising concerns about potential conflicts of interest.
Smith’s resignation and Texas Lottery leadership
Clark Smith was appointed as a Texas Lottery Commissioner in November 2023 by Gov. Greg Abbott. An Austin-based attorney specialising in administrative and regulatory law, Smith was expected to serve until 2029. His sudden resignation leaves the commission with four remaining members, including Chair Robert Rivera.
Smith’s departure follows the resignation of former Executive Director Gary Grief in 2024. Grief is currently facing fraud allegations related to lottery couriers, with some lawmakers suggesting he should face criminal charges. A lawsuit filed in February also accuses Grief of facilitating illegal transactions involving courier services.
Future of Texas Lottery regulation
The controversy has prompted multiple legislative efforts. A bill banning lottery couriers is set for a Senate State Affairs Committee hearing on 24 February 2025. Additionally, the Texas House Appropriations Committee will discuss the Texas Lottery Commission’s oversight the next day.
If the Legislature does not pass a renewal bill, the Texas Lottery could cease operations. Patrick warned of potential consequences if reforms are not made, “If we don’t pass the sunset bill before we leave session, the lottery is out of business,” he said.
The Texas Lottery Commission is also under review by the Texas Sunset Advisory Commission, which evaluates state agencies every 12 years. The commission was last under review during the 83rd legislative session in 2013.
