A Texas lottery player has filed a lawsuit claiming his $7.5 million Lotto Texas jackpot was reduced by $95 million due to an alleged conspiracy to manipulate a prior drawing.
The suit, filed in Travis County on April 8, accuses a group of lottery retailers and a London-based sports betting company of rigging the game, shrinking the prize pool before the plaintiff’s May 2023 win.
The plaintiff, Jerry Reed, alleges that in April 2023, an individual purchased nearly every possible number combination for a Lotto Texas drawing, securing a $95 million jackpot. The lawsuit claims this was orchestrated by retailers and the betting company, causing the subsequent jackpot to drop significantly. Reed contends his prize would have been $100 million without the alleged manipulation.
Just ahead of the April 22, 2023, Lotto Texas drawing, an entity known as Rook TX spent $25 million to increase the number of lottery terminals at four retail locations allegedly participating in the scheme. The alleged perpetrators of the scheme then used QR codes to generate 27 million tickets, essentially guaranteeing themselves a winning ticket, Lottery USA reported.
“This is probably the greatest fraud ever perpetrated on the State of Texas by any group,” Texas Senator Paul Bettencourt (R-Houston) said at a state senate hearing on the matter.
“Had the defendants not engaged in their illegal money laundering and game-rigging scheme connected to the April 22nd draw, the $95 million jackpot would have rolled over, as there were no other winners. Consequently, Jerry Reed’s May 17 jackpot win would have been $102.5 million instead of $7.5 million,” Reed’s lawsuit claims.
The lawsuit adds to recent controversies surrounding the Texas Lottery, which has faced scrutiny over other high-profile jackpots, such as a disputed $83.5 million prize earlier this year.