Texas Class Action Suit Against Lottery.com Dropped
A class action lawsuit filed against Lottery.com and former Lottery Commission executive director Gary Grief for fraud has been dropped. The suit, brought by Lottery watchdog Dawn Nettles, was voluntarily dismissed.
The suit targeted a specific Texas Lottery draw that took place on April 22, 2023. This was one of the biggest jackpots in state history, totaling $95 million. The controversy stems from both how the jackpot was won and to whom it went.
The winner of the lump sum, which was $57.8 million, was a business called Rook TX LP, located in Delaware. According to details posted by The New York Times, the jackpot was won by an entity that spent $25 million on lottery tickets to utilize every possible number combination and take home the prize.
Rook TX was addressed in the Dawn Nettles, et al. vs. Rook TX LP, Gary N. Grief, IGT Solutions Corporations, and Lottery.com lawsuit, being described as a “Delaware entity that has engaged in business in Texas, specifically to launder stolen lottery funds from the State of Texas.”
The lawsuit was filed in the 333rd District Court in Houston, Texas, and then moved to the Business Court Division 11a. The case was later dismissed under Texas Rule of Civil Procedure 162 because it had made ‘unfounded allegations’ against Lottery.com.
“I had the opportunity to meet Ms. Nettles earlier this year when I appeared before the Texas Senate Finance Committee. She is a long-time advocate for the fair and transparent operation of Texas lottery games, a belief shared by our company, Lottery.com. We believe the decision to seek a voluntary dismissal speaks to the lack of any evidence that Lottery.com was engaged in any wrongdoing,” said Gregory Potts, Chief Operating Officer at Lottery.com.
“We have fully cooperated with all investigations into the April 2023 Lotto Texas drawing, and to my knowledge, there has been no finding against the Company of any of the activities claimed in this lawsuit.”
Lottery.com privy to controversy
This is not the only instance of controversy surrounding Lottery.com and the bulk purchase of tickets.
Jerry B. Reed has also filed a suit against the agency after he won the Lotto Texas jackpot of $7.5 million in 2023. The lawsuit claims that the bulk purchases prevented Mr. Reed from claiming the full jackpot of $95 million.
Reed’s lawsuit alleged that Lottery.com, as well as Lottery Bow, ALTX Management, and Qawi and Quddus Inc., had worked with the sports betting group Colossus Bets to purposefully buy large amounts of lotto tickets worth over $25 million. Lottery.com has yet to respond to the lawsuit.
The current lawsuits come as more states seek stricter regulation of state lotteries. In Texas, Senate Bill 3070, which aims to abolish the Texas Lottery Commission and transfer regulation to the Texas Commission of Licensing and Regulation, recently passed in the House and is awaiting signature into law.
Additionally, New York Sen. Joseph Addabbo has also spoken out about wanting to regulate online casinos and lottery spaces.
