Texas Lottery Winner Says He Was Shortchanged $95 Million
AUSTIN ( KXAN A lottery participant from Texas has initiated legal action, claiming that his May 2023 Lotto Texas jackpot winnings were significantly reduced by approximately $95 million due to a conspiracy between several lottery vendors and a UK-based sports betting firm to manipulate a lottery draw just weeks prior to his victory.
On May 17, 2023, Jerry B. Reed from Hood County, Texas, hit the big win in the Lotto Texas drawing with a prize totaling $7.5 million.
Reed contended in the lawsuit that the prize could have amounted to an additional $95 million if an organization called Rook TX hadn't bought the winning Lotto Texas jackpot ticket valued at $95 million back in April 2023.
The victory in April has already faced backlash from Texas Lottery participants. legislators who have labeled the occasion as a money laundering operation .
Reed is pursuing "the recovery of funds wrongfully and illicitly acquired" by the defendants in the case.
A ‘game rigging scheme’
The lawsuit alleges four lottery retailers, Lottery.com, Lottery Now, Inc., ALTX Management, LLC, and Qawi and Quddus, Inc., worked with a sports gambling company, Colossus Bets, to orchestrate a bulk purchasing event where they bought more than $25 million worth of lottery tickets that covered nearly all possible number combinations to almost guarantee a jackpot win.
The lawsuit alleges that Colossus Bets and Lottery.com—as well as their founders, Ryan Dickinson, Tony DiMatteo, and Matthew Clemenson—colluded with the additional three retailers mentioned in the complaint to execute this large-scale purchasing strategy. According to the legal filing, these retailers were required to generate approximately 2.58 million tickets containing various sets of ten numbers within a strict timeframe of fewer than 72 hours for printing almost all conceivable number combinations.
Reed’s lawsuit argues that the legal methods for buying lottery tickets are much too inefficient to produce such a large number of tickets so quickly. According to the complaint, the sellers allegedly utilized specially designed software installed on phones to create fake QR code systems. This scheme purportedly deceived the state-sanctioned Texas Lottery terminals into accepting these codes as though they were issued through the official Texas Lottery Commission mobile application.
Nexstar’s KXAN reached out to owners and officials of the mentioned retailers — as they were listed on each retailer’s lottery license application with the Texas Lottery Commission — for comment on this lawsuit. We are waiting for a response.
To claim victory in the Lotto Texas jackpot, one must successfully match all six numbers on their ticket. Prizes are awarded for matching three, four, and five numbers as well. For instance, during the April 2023 draw, these smaller wins varied from $3 up to $2,015 per ticket. The organization known as Rook TX managed to secure 394,574 tickets featuring various winning combinations, amassing total prize money amounting to $60,264,030.
Claiming the winning ticket
The lawsuit alleges Colossus Bets formed the Rook GP LLC and Rook TX LP “as vehicles to hide the identity of the company and individuals who received the proceeds of the illegal game-rigging scheme.” Based on Delaware's official registry On June 14 and 15, 2023, respectively, Rook GP LLC and Rook TX LP were established in the locations where they came into being.
The legal complaint states that an attorney from New Jersey named Glenn Gelband went to Texas to submit the victorious ticket for Rook TX to the state’s lottery officials. According to the suit, Gelband allegedly misrepresented when the organization had been established, indicating it was set up on March 1st of that same year, which contradicts what he put down on the Texas Lottery Winner Claim Form. The document asserts that the parties involved violated Texas statutes by "fraudulently or deceptively asserting ownership over a lottery win through false pretenses."
Nexstar managed to contact Gelband via telephone; however, he mentioned being occupied due to a meeting and stated that he would have availability for conversation later in the week. The article will be updated upon receiving further details.
What does the future hold for the Texas Lottery?
This legal case marks yet another turn in the ongoing narrative surrounding the Texas Lottery Commission. The Texas Governor, Greg Abbott, has previously instructed the Texas Rangers. To examine the victory from April 2023. a more recent lottery victory in February In that victory during February, a woman from Texas claimed $83.5 million after spending just $20 on tickets via a lottery courier service. This platform enables individuals to purchase lottery tickets and scratch-offs using an application.
The Texas Lottery Commission informed the woman and her lawyer that she might not be entitled to any of those winnings since the Rangers are conducting an investigation. The Commission has likewise declared that lottery courier services are not allowed in the state of Texas. after facing mounting criticism from lawmakers. A proposed rule change would revoke the license of any retailer that works with a courier service.
This year, the commission faces a Sunset review, which means state legislators must determine whether to keep the lottery running or terminate it entirely. Lieutenant Governor Dan Patrick stated at a press briefing recently that lawmakers will probably need to reach a decision regarding the lottery’s fate before the Rangers conclude their inquiry.
We cannot reinstate the Lottery Commission unless we have faith in it," Patrick stated. "If we can't face Texans and assure them, 'You can rely on the Lottery; it's free from corruption, offering fairness both for the deals and the games.' Should we be unable to make this claim, extending the commission would not be feasible.
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