The Texas Lottery Commission is now in search of new leadership after Commissioner Clark Smith resigned on Friday. This resignation came amid growing controversy surrounding the use of third-party courier services to buy lottery tickets.
Smith’s resignation comes just a week after a highly scrutinized $83.5 million winning ticket was purchased in Austin through Jackpocket, a lottery courier app affiliated with DraftKings, as previously reported by The Dallas Express.
The app lets players buy tickets virtually and have a third-party courier purchase them in person. While courier services like Jackpocket have been allowed to run in Texas since 2016, their legality and regulation have become a hot point of debate throughout the Lone Star State.
The recent and controversial $83.5 million winning ticket drew sharp criticism from Texas lawmakers, including Lieutenant Governor Dan Patrick, who last week denounced the use of such courier services in a viral social media video.
“An $83 million winning ticket was sold in Austin. Turns out, the retail establishment that sold the winning ticket in the front of the store was owned by the courier service that purchased the ticket behind the wall in the back of the store,” Patrick said in the video.
State officials are increasingly concerned about the lack of regulation of online courier services, as the Texas Lottery Commission can only regulate physical retail outlets where tickets are sold, not digital platforms, according to a report from WFAA.
In response to the growing backlash, Rep. Matt Shaheen (R-Plano) filed legislation to close the loophole that allows third-party couriers to operate unchecked in the lotto market. Lawmakers argue that these services, while legal, could be exploited to undermine the integrity of the lottery system.
Smith, who Governor Greg Abbott appointed in November of 2023, has faced increasing scrutiny from lawmakers, particularly after a Senate Finance Committee hearing earlier this year. The controversy with the recent ticket was further compounded by a lawsuit alleging a fraud scheme involving former Texas Lottery Commissioner Gary Grief and the company Lottery.com.
Smith, an Austin attorney who previously served as general counsel for the Texas Alcoholic Beverage Commission, served less than a year before stepping down from the Texas Lottery Commission.
The Commission now faces an uncertain future as multiple lawmakers continue to call for stronger regulations, oversight of third-party lottery services, and any conflict of interests that may impact the sale of future winning lotto tickets.