The Texas Lottery Commission and its former director Gary Grief are embroiled in controversy, facing accusations of defrauding players and participating in a "long-running fraud scheme" in collaboration with Lottery.com, as revealed by KVUE. The allegations were brought to light during a senate hearing, where attorney Manfred Sternberg testified, "My client believes that this criminal conspiracy started in 2017 when Gary Greif traveled to California to lobby the founders of Lottery.com to relocate their business to Austin." Sternberg's claims suggest that Grief and Lottery.com began a partnership that ultimately led to the manipulation of the Texas Lottery system.
According to the class action lawsuit filed in Harris County District Court by Dawn Nettles, Grief, and Lottery.com are accused of acts that include manipulating the outcome of lottery games and misappropriating funds. The lawsuit hinges on an investigation into an April 2023 $95 million Lotto Texas jackpot drawing, which Sternberg alleges was won through fraudulent means, such as using a large number of tickets that were purchased in bulk to guarantee almost every number combination. These claims, if proven to be true, could fundamentally change how the public perceives the integrity of the Texas Lottery.
Lottery leaders appeared before the Texas Senate Finance Committee to discuss their budget request but faced intense scrutiny from lawmakers concerned about the oversight of the lottery's operations. The criticisms echoed a recent report from the Texas Sunset Advisory Commission, which highlighted possible lax management and the ability of the lottery system to be exploited for criminal activities like money laundering. "This is a huge operation of trying to wash bad money and bring it through lottery commissions so that it is cleared effectively," State Senator Paul Bettencourt expressed in the hearing as obtained by KVUE.
The allegations extend beyond the jackpot incident, suggesting a pattern of impropriety that began as early as 2017. Sternberg detailed how Grief and other defendants bypassed regular legislative processes and enabled overnight printing of tickets and anonymous claims, which were specifically catered to benefit Lottery.com, as per his statement. These sweeping accusations are prompting calls for an investigation by the Texas Rangers or the Attorney General's Office, with Senator Carol Alvarado saying, "That's a crime and it should be investigated and he should suffer the consequences" in the interview obtained by KXAN.
As the case unfolds, the Texas Lottery Commission and Lottery.com have issued statements addressing the issue. Lottery.com insists that its entire board of directors and executive management team were replaced in late 2022, asserting that no current officer was in an executive role when the alleged incidents occurred and that the company is committed to acting with integrity and in full compliance with responsible gaming laws. The Texas Lottery Commission has active investigations into the allegations, according to their statements. Responses from the alleged parties involved like Grief, Dickinson, or the Texas Attorney General's Office have yet to be received.
