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Texas Lottery Director Resigns Amid Jackpot Probes, Legislative Scrutiny

AUSTIN, Texas – The Texas Lottery Commission is reeling after its executive director, Ryan Mindell, resigned Monday, marking the latest upheaval amid ongoing investigations into a series of high-profile jackpots and escalating calls from state lawmakers to overhaul or even shut down the agency.

Mindell’s departure follows mounting scrutiny over lottery prizes totaling nearly $200 million awarded in 2023 and early 2025, sparking probes by both Gov. Greg Abbott and Attorney General Ken Paxton. These investigations center on the integrity of the lottery’s operations and the state’s handling of third-party courier companies that purchase and deliver tickets online on behalf of customers.

The Texas Lottery Commission announced Mindell’s resignation without explanation, a move that has intensified the spotlight on the agency’s practices. Mindell, who previously served as deputy director and operations director, had been in the executive director role for approximately one year, following the unexpected departure of his predecessor.

While the lottery and the courier companies have denied any wrongdoing, the controversy has ignited a fiery debate within the Texas Legislature. Lawmakers are actively considering a range of potential reforms, from imposing a legal ban on lottery sales through courier companies to the more drastic step of defunding the agency altogether, effectively shuttering its operations.

“The governor expects the Texas Lottery Commission to work within the bounds of the law and to ensure the trust and integrity of the lottery regardless of who leads the agency,” Abbott spokesman Andrew Mahaleris said Tuesday.

A Texas lottery spokesman declined to comment further on Mindell’s resignation.

The core of the controversy lies in two critically important jackpots that raised eyebrows and spurred allegations of impropriety. in April 2023, a staggering $95 million jackpot was awarded after the winners purchased virtually every possible number combination – more than 25 million tickets.Then,in February 2025,an $83 million winning ticket was purchased through a courier service,with the parent company operating storefronts in six states.

A Houston Chronicle investigation shed light on the massive buying effort behind the 2023 jackpot, prompting wider concerns. The subsequent $83 million win, facilitated by a courier company, drew the attention of key state lawmakers, and also the governor and attorney general, transforming the agency from a relatively low-profile operation into a subject of intense scrutiny.

Gov. abbott directed the Texas Rangers, the state’s premier law enforcement agency, to launch an investigation, while Attorney General Paxton initiated a separate probe by his office. Both investigations are currently ongoing.

the Legislature has also held public hearings, with lawmakers directly criticizing lottery officials for allowing the use of courier companies, arguing it circumvented state laws mandating in-person ticket purchases. In February, Mindell testified before state lawmakers that the agency had previously concluded it lacked the authority to regulate courier companies, but that it would now move to ban them.

The Coalition of Texas Lottery couriers fired back, accusing Mindell of trying to make courier companies “become the scapegoat for its own questionable activities,” and “inaccurately and unfairly” pushing the agency’s position. The group insisted its members played no role in the 2023 jackpot scheme.

“Mindell’s departure provides an opportunity to reconsider the agency’s politically motivated decisions regarding lottery couriers and restart good faith collaboration between our companies and the TLC,” the coalition said in a statement.

As the Legislature enters the final weeks of its biennial session,the stakes are high. Lawmakers are considering a range of actions, from codifying a ban on courier sales into law to the more dramatic step of eliminating the lottery altogether.

The state Senate has already approved a bill banning courier sales, but the measure awaits a vote in the House. The House and Senate will soon begin negotiating a final version of the two-year state budget. The House version currently allocates no funding for the lottery, effectively shutting it down.

Amid the calls for stricter regulations,some question the potential ramifications of severely restricting or eliminating the Texas Lottery,particularly its impact on public education funding. In 2024, the lottery contributed approximately $2 billion to the state’s public school fund. Critics argue that eliminating this revenue stream would necessitate finding choice funding sources, perhaps leading to cuts in other crucial state programs or increased taxes.

While the House version of the budget sends a strong message, the reality is that lawmakers are more likely to seek reforms than to close down an agency that generates billions of dollars annually for public schools.

Texas law allows lottery winners to claim their prizes anonymously. In the April 2023 case,the $95 million jackpot was claimed in June of that year in the form of a one-time payment of $57.8 million paid to a company identified as Rook TX.

However, the payment for the February jackpot is currently on hold pending the outcome of the state investigations. An attorney representing a woman claiming to hold the winning ticket has stated that the ticket was legally purchased as part of a group of 10 bought through the courier service Jacketpocket.

FAQ: Texas Lottery Controversy

What are the main concerns surrounding the Texas Lottery?
The main concerns revolve around the integrity of recent jackpots,potential manipulation of the system by courier companies,and whether state laws are being circumvented by online ticket sales. What is a lottery courier company?
Lottery courier companies buy and deliver lottery tickets on behalf of customers, often online, allowing people to play without physically visiting a retailer.

How does the lottery benefit texas?
The Texas Lottery contributes significant revenue to the state’s public education fund, with approximately $2 billion allocated in 2024.

Can lottery winners in Texas remain anonymous?
Yes, Texas law permits lottery winners to claim their prizes anonymously, typically through a trust or legal entity.

* What is the potential impact of the investigations on the Texas Lottery?
The investigations could lead to stricter regulations on lottery operations, potential bans on courier sales, and, in a more extreme scenario, the defunding or closure of the lottery.

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