Texas Lottery Director Resigns Amid Jackpot Investigations and Calls for Reform

The executive director of the Texas Lottery Commission, Ryan Mindell, has resigned. This departure marks the latest in a series of changes at the state's retail gambling enterprise. The resignation follows multiple investigations into significant jackpot wins in 2023 and early 2024, totaling nearly $200 million. Some lawmakers have even called for the lottery's closure. Mindell, who had been in the top position for about a year, previously served as deputy director and operations director.

Mindell's resignation comes as the agency faces at least two investigations. These investigations, ordered by Governor Greg Abbott and Attorney General Ken Paxton, are focused on the integrity of lottery prizes and the state's handling of courier companies that purchase and send tickets online on behalf of customers. While both the courier companies and lottery officials have denied any wrongdoing, the situation has prompted scrutiny.

Texas state lawmakers are considering various changes, including a potential legal ban on sales through courier companies. They are also considering the more drastic measure of shutting down the agency by eliminating its funding. The Texas lottery, established in 1991, contributes a portion of its annual revenue to public education. In 2024, approximately $2 billion was allocated to the state's public school fund.

The scrutiny intensified after two of the largest jackpots in the agency's history. The first, a $95 million jackpot in 2023, was won after the winners purchased nearly every possible number combination. The second, an $83 million ticket won in February, was purchased at a courier store. These events led to questions about fairness and the role of courier companies.

Governor Abbott ordered an investigation by the Texas Rangers, and Attorney General Paxton initiated a probe by his office. The legislature held public hearings to address the lottery's allowance of courier companies, which bypass the state law requiring in-person ticket purchases. Mindell had previously stated the agency lacked the authority to regulate courier companies but would move to ban them.

As the legislative session nears its end, lawmakers are considering a courier ban and other measures. The Senate has already passed a ban on courier sales, but the House has yet to vote on it. The House version of the state budget currently includes no funding for the agency, which could effectively shut it down. However, this move is likely a message to the agency rather than a serious attempt to close it down.

Texas law allows jackpot winners to remain anonymous. The April 2023 jackpot was claimed two months later as a one-time payment of $57.8 million to a company called Rook TX. The payment for the February jackpot is currently on hold pending the state investigations. An attorney for a woman claiming to hold the winning ticket has stated it was legally purchased through the courier Jacketpocket.