Texas Lottery Faces Lawsuit by Lotto.com over Prohibition of Delivery Service
Article:
Title: Lotto.com Battles Texas Lottery in Lawsuit over Banned Services* Lottery Industry Under Fire after Multi-million Dollar Jackpot Win* Texas Lottery Commission Faces Legal and Political Heat
Published: April 25, 2025, 02:42hLast updated: April 25, 2025, 02:42hAuthor: Philip Conneller, @casinoorgphilc
In a bold move, Lotto.com took legal action against the Texas Lottery Commission (TLC) to challenge a ban on their services in the Lone Star State.
The lawsuit accuses the TLC of doing an about-face, supporting courier services like Lotto.com before politically motivated pressure led to their prohibition. On the same day, a mass seizure of lottery terminals from couriers occurred, according to court documents.
Initially, the TLC had argued that it lacked the authority to regulate courier services. However, now they find themselves defending this very claim in the courts.
'Fixed' Jackpot Scandal
Courier services, including Lotto.com, enable players to select their numbers and buy tickets via an app. A licensed physical lottery retailer then processes the order.
Yet, the presence of such services in Texas has stirred controversy due to a European syndicate's shocking victory of a $95 million jackpot in April 2023. The syndicate coordinated with three lottery couriers to buy every possible combination of winning numbers – a staggering 25.8 million of them [4][5].
While it is against Texas law to sell lottery tickets by phone or engage in online gambling, couriers argue they don't break these laws since they merely provide a delivery service for lottery tickets.
After a grilling by the state Senate Finance Committee in February, the TLC hinted at plans to ban the courier industry and suspend vendors connected to it.
'Not Inconsistent' with Laws?
Interestingly, the lawsuit alleges that, in February 2021, TLC's Lottery Operations Director Ryan Mindell [later TLC chief executive] informed Lotto.com CEO Tom Metzger that the company's business model was not in violation of Texas law [1]. He suggested the steps Lotto.com should take to obtain TLC certification.
In July 2021, Lotto.com submitted a request for a legal opinion on their operations from the TLC. Mindell reportedly confirmed that Lotto.com did not require a license and their activities did not breach the Texas penal code [1]. The lawsuit further contends that the TLC supported and cooperated with Lotto.com and other couriers, including assisting with the development of digital scratch products [1].
"Now, over two years later, the Lottery seeks to rewrite history," claims the lawsuit [1].
Following the scandal, Mindell stepped down from his role as TLC's executive director on Monday.
In summary, the TLC's once cooperative relationship with Lotto.com and other courier services has dramatically changed in the face of allegations of fraud, manipulation, and questionable investigations, resulting in lawsuits from frustrated users who claim they've been wronged by the Texas Lottery Commission's changing stance on courier services [1][3][4].
Enrichment Data:
- The lawsuit reveals that, after becoming TLC's chief executive, Ryan Mindell issued a statement that there was no legal basis for support of courier services, contradicting his earlier statements.
- The widespread suspicions of fraud and manipulation in the lottery system led to increased scrutiny of the TLC, potentially paving the way for reforms or even dismantling the agency.
- Winners who purchased tickets through courier services and are yet to receive their prize money have joined the ongoing legal battle against the TLC.
- The lawsuit filed in February 2025, which included Lottery.com, TLC, and Gary Grief in its allegations, was dropped due to insufficient evidence against Lottery.com, but it has kept the controversy alive.
- Ryan Mindell, the former Lottery Operations Director of the Texas Lottery Commission (TLC), initially informed Lotto.com CEO Tom Metzger that their business model was not in violation of Texas law and suggested steps to obtain TLC certification in February 2021.
- In July 2021, Lotto.com filed a request with the TLC for a legal opinion on their operations and was reportedly told by Ryan Mindell, then TLC's executive director, that they did not require a license and their activities did not breach the Texas penal code.
- The TLC's relationship with Lotto.com and other lottery courier services has been strained since allegations of fraud, manipulation, and questionable investigations in the lottery system emerged, leading to lawsuits and frustrations among users who purchased tickets through these services.
- Despite stating earlier that there was no legal basis for support of courier services, Ryan Mindell, as TLC's chief executive, issued a statement that contradicted his earlier statements after becoming the executive director, as revealed in the lawsuit.
