“We all know the Commission is not allowed to change the rules after the drawing. But the Commission has apparently tried to do so and relied—at least in part—on this ex post facto announcement to continue to refuse to pay Plaintiff her lottery winnings simply because she utilized a lottery ticket courier service to buy the winning ticket,” the lawsuit claimed.
The Texas Lottery Commission will pay nearly $50 million to settle a lawsuit filed by a woman who said the state refused to pay her jackpot because she bought a winning ticket through a courier service.
According to The Texas Tribune, the settlement between the state lottery commission and plaintiff Kristen Moriarty was filed on Thursday. In a statement, the Texas Lottery Commission said that the dispute had been settled pursuant to guidance received from Attorney General Pen Paxton.
Under the terms of the agreement, Moriarty will receive $45.8 million, less taxes, in a single lump-sum payment.
Moriarty told The Texas Tribune that having to sue for her lottery winnings led her to lose faith in the legal system.
“I’m sad, stressed, angry that this has become a political thing,” Moriarty said in a June interview with the Tribune. “I’ve lost faith in our elected officials. And yeah, I really don’t know what else to say that I can say out loud.”
About a week after Moriarty won the ticket, Texas Lottery Commission Executive Director Ryan Mindell announced that the state would ban lottery courier services.
Lottery courier services, which often exist in a sort of legal grey area, allow customers to purchase lottery tickets virtually, even when and where state law indicates that they should be purchased in-person.
However, the state didn’t announce the change until after Moriarty had bought her winning numbers.
“We all know the Commission is not allowed to change the rules after the drawing. But the Commission has apparently tried to do so and relied—at least in part—on this ex post facto announcement to continue to refuse to pay Plaintiff her lottery winnings simply because she utilized a lottery ticket courier service to buy the winning ticket,” the lawsuit claimed.
“If [lottery commission officials are] not restrained and enjoined from disbursing or diminishing the Plaintiff’s jackpot prize winnings, Plaintiff will suffer damages that will be incapable of being measured by any certain pecuniary standard before notice is given and a hearing is held on Plaintiff’s Application for Temporary Injunction,” Moriarty’s attorneys wrote in court filings.
In an earlier report, the Texas Tribune noted that the state lottery commission had been skeptical of the legality of courier services even before Moriarty’s win. In 2023, for instance, a group of investors used a courier service to purchase 99% of the 26 million possible ticket combinations necessary to win a $95 million jackpot
Sources
Texas Lottery to pay winner of $83.5M jackpot after withholding prize for months
Texas woman sues state lottery after not receiving controversial $83.5M jackpot
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