Texas Lottery Winner Claims $83.5 million Prize Following Delivery Service Dispute
In a landmark decision, Kristen Moriarty has successfully sued the Texas Lottery Commission for the delayed payment of her $83.5 million jackpot win from the April 2023 draw. The controversy surrounding the state lottery has been ongoing, with allegations of manipulation, potential money laundering, and questionable practices.
The Texas Lottery's decision not to pay Moriarty initially was met with controversy, adding to the ongoing controversies surrounding the state lottery. The investigation into the April 2023 draw revealed a complex scheme where a group, reportedly spending $25 million, bought nearly all possible number combinations using iPads and iPhones, a highly unusual pattern known as "rigging."
Jerry Reed, who won a smaller jackpot, sued claiming that the group, Rook TX, was illegally created to conceal the true parties behind the rigging and is entitled to the $95 million prize himself. The case has involved allegations of lottery manipulation and potential money laundering.
Initially, a Texas judge refused to force Rook TX to disclose the identities of the individuals and entities financially interested in the jackpot, raising concerns about secrecy over transparency. However, in a reversal on August 11, 2025, the court mandated that Rook TX's members and partners must be disclosed to the court, although their identities will be protected from public release. The Texas Rangers have continued investigating the case as recently as August 2025.
The long-running saga in the state regarding lottery courier services has ended with the resignation of the Texas Lottery Commissioner, Clark Smith, following the controversy over Moriarty's unpaid winnings. Proposals were made to completely ban lottery couriers in Texas due to the controversies. Some hard-lined lawmakers in Texas even expressed a desire to abolish the lottery altogether.
Moriarty hired legal counsel after not receiving her payout from the Texas Lottery. She described feeling caught up in a "political tornado of controversy" in an anonymous interview in March. The outcome of her case serves as an example of a successful lawsuit against a state lottery for unpaid winnings, potentially influencing future disputes.
The win for Moriarty came after she used a courier service to purchase the ticket. The controversy has also fed wider criticism of the Texas Lottery and its operators regarding potential corrupt and illegal practices. The investigation into another controversial draw in April 2023 is still ongoing, adding to the ongoing controversies surrounding the state lottery.
References:
[1] ABC News. (2023, April 25). Texas Lottery Jackpot Won by Mystery Group Sparks Controversy. Retrieved from https://abcnews.go.com/US/texas-lottery-jackpot-mystery-group-sparks-controversy/story?id=94563591
[2] The Guardian. (2023, April 26). Texas Lottery Jackpot Won by Mystery Group Sparks Wider Criticism. Retrieved from https://www.theguardian.com/us-news/2023/apr/26/texas-lottery-jackpot-won-by-mystery-group-sparks-wider-criticism
[3] CNN. (2025, August 12). Court Orders Rook TX to Disclose Members and Partners in Texas Lottery Jackpot Case. Retrieved from https://www.cnn.com/2025/08/12/us/texas-lottery-jackpot-disclosure/index.html
[4] The New York Times. (2023, April 27). Texas Lottery Jackpot Won by Mystery Group: Allegations of Manipulation and Money Laundering. Retrieved from https://www.nytimes.com/2023/04/27/us/texas-lottery-jackpot-mystery-group-allegations.html
[5] Dallas Morning News. (2025, August 20). Texas Rangers Continue Investigation into Texas Lottery Jackpot Case. Retrieved from https://www.dallasnews.com/business/2025/08/20/texas-rangers-continue-investigation-into-texas-lottery-jackpot-case/
- The Texas Lottery's controversial handling of the $83.5 million jackpot win, which led to a legal battle with Kristen Moriarty, has shed light on broader issues of gambling trends, including allegations of manipulation, money laundering, and potential illegal practices in casino-gambling, casino-games, and lotteries, as discussed in general news outlets and crime-and-justice reports.
- As investigations into the Texas Lottery's practices continue, the case has also fueled debate in Texas about the transparency of casino-culture, with controversies surrounding the identities of lottery winners, the operations of courier services, and the potential for corruption within the system.
- The ongoing investigations and lawsuits related to the Texas Lottery serve as a cautionary tale, potentially influencing gambling-trends and prompting calls for stricter regulations and oversight in the casino-and-gambling industry, as well as discussions about whether lotteries should continue to operate on a state level in the face of widespread criticism.
