The Texas Lottery Commission and its former director, Gary Grief, are embroiled in controversy, accused of scamming players and participating in a “long-running fraud scheme” with Lottery.com, according to KVUE. During a Senate hearing, 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.” According to Sternberg’s assertions, Grief and Lottery.com formed a cooperation that resulted in the manipulation of the Texas lottery system.
Dawn Nettles filed a class action lawsuit in Harris County District Court accusing Grief and Lottery.com of misappropriating funds and manipulating lottery game results. The complaint is based on an investigation into the April 2023 $95 million Lotto Texas jackpot drawing, which Sternberg claims was won fraudulently, such as by purchasing a large number of tickets in bulk to ensure practically every number combination. If proven true, these charges have the potential to drastically alter public perceptions of the Texas Lottery’s integrity.
Lottery officials appeared before the Texas Senate Finance Committee to present their budget request but were met with sharp criticism from lawmakers concerned about the lottery’s operations. The complaints paralleled a recent assessment from the Texas Sunset Advisory Commission, which highlighted possibly inadequate administration and the lottery system’s potential for illicit use, such as 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 stated in the hearing, which was acquired by KVUE.
The charges go beyond the jackpot occurrence and point to a pattern of wrongdoing that began in 2017. According to Sternberg, Grief and other defendants bypassed regular legislative processes, allowing for the overnight production of tickets and anonymous claims that were intentionally tailored to favor Lottery.com. These broad claims have prompted calls for an inquiry by the Texas Rangers or the Attorney General’s Office, with Senator Carol Alvarado declaring, “That’s a crime and it should be investigated and he should suffer the consequences” in an interview obtained by KXAN.
As the case progresses, the Texas Lottery Commission and Lottery.com have published statements regarding the matter. Lottery.com insists that its entire board of directors and executive management team will be replaced in late 2022, claiming that no current officer was in an executive role when the alleged incidents occurred and that the company is dedicated to acting with integrity and in full compliance with responsible gaming laws. According to claims, the Texas Lottery Commission is conducting an active investigation into the allegations. Responses from the claimed parties involved, including Grief, Dickinson, and the Texas Attorney General’s Office, have yet to be received.
