In 2023, a scandal erupted in Texas as European professional bettors orchestrated an audacious scheme to corner the market on lottery tickets, aiming for a massive payday in the U.S.'s lightning-fast gambling scene.

What unfolded was shocking: Texas officials seemingly turned a blind eye, effectively greenlighting the manipulation of their own state lottery. State Senator Bob Hall described it starkly: "What we had was a criminal enterprise within our government." The implications of this brazen act have sent ripples through a state notorious for its skepticism of government oversight.

A Deep Dive into the Scandal

With millions on the line, the stakes couldn't have been higher. Investigations led by Texas Governor Greg Abbott and Attorney General Ken Paxton followed the shocking findings, while the Texas Senate held public hearings on the unfolding drama. In an unprecedented move, the Texas House even cut lottery funding in its latest budget.

Despite the millions won by the schemers, they remain untouched. With extravagant details emerging—fake retailers pumping out tickets, text exchanges between ticket printers and a former drug trafficker, and mysterious wins linked to a shadowy Delaware company—the move has exasperated many Texans who feel that the system is rigged.

The Mechanics of the Fix

As investigations unfolded, the role of state regulators came under scrutiny. Reports revealed that the founders of a British betting company, Colossus Bets, colluded with the struggling American startup Lottery.com and others, enabling them to purchase nearly every possible lottery combination just in time for a significant draw. This covert operation was facilitated by Texas lottery officials, who overlooked rule violations and rushed them access to new ticket-printing machines.

With nearly 26 million $1 tickets bought, the conspirators struck gold, winning a staggering $95 million. While the Texas Lottery Commission applauded the event as a success for public schools that benefit from lottery revenue, many are questioning the ethics of their decisions.

The Regulatory Role Under Fire

Texas Lotto had enviable odds, relatively speaking, with about 25.8 million combinations compared to Powerball's odds of 1 in 300 million. The structure made it appealing for high-stakes gamblers. However, despite being aware of the burgeoning interest from international players, executives at Lottery.com initially hesitated before diving into the money-making venture.

Concerns were dismissed when Lottery.com executives got unexpected approval from state regulators, allowing them to proceed with the plan, which sent ticket sales skyrocketing.

Behind the Curtain: Who Got Rich?

The winner of the historic jackpot, subsequently cloaked in anonymity, emerged as Rook TX, a Delaware company. Transactions recorded from various storefronts in Texas raised eyebrows as they printed $11 million-worth of tickets in just 72 hours. The production pace was shocking, with terminals seemingly working around the clock.

Critics of the lottery system are now raising alarms about its vulnerability and transparency, igniting a fierce debate about the role of lottery couriers—companies set up to buy tickets on behalf of consumers—that were initially welcomed by state regulators.

Legal Fallout and Continuing Investigations

Republican leaders have now shifted their views on couriers, deeming them as violators rather than revenue generators. Following the controversy, Gary Grief, the executive director of the Texas Lottery Commission, resigned amidst scrutiny over the commission’s policies and practices.

Victims of this scandal include ordinary Texans who naively believed they had a fair shot at winning. Yet, the framework to buy adequate numbers to ensure a winning ticket has been proven possible by savvy bettors in various circumstances.

Uncovering the Shadows of the Lottery