Consensus Reached in Jackpot Dispute with Texas Lottery Commission, Amounting to Almost $50 Million
In a significant turn of events, Kristen Moriarty, a Texas resident, has won a lawsuit against the Texas Lottery Commission (TLC). The legal battle stemmed from the TLC's initial refusal to pay Moriarty her nearly $46 million jackpot, as she had purchased a winning ticket through a lottery ticket courier service.
According to court documents, Moriarty's attorneys argued that if the TLC disbursed or diminished her jackpot prize winnings, she would suffer damages that are incapable of being measured before a hearing on her Application for Temporary Injunction. The complaint specifically states that the TLC unlawfully tried to change the rules after the drawing, relying on a "ex post facto announcement" to deny her prize simply because of the courier service usage.
The controversy surrounding the use of courier services in purchasing lottery tickets has been a contentious issue for the TLC. The Texas Tribune reported that the state lottery commission had been skeptical of the legality of courier services even before Moriarty's win, as evidenced by a group of investors using a courier service to purchase 99% of the necessary ticket combinations for a $95 million jackpot in 2023.
Following a lengthy legal battle, the TLC has settled the lawsuit and agreed to pay Moriarty nearly $46 million, effectively acknowledging the impropriety of changing rules retroactively after the drawing. The settlement was filed on Thursday.
This controversy and other similar issues regarding courier services led to the banning of lottery couriers in Texas and the eventual disbanding of the Texas Lottery Commission, with sweeping changes introduced in state lottery operations by legislation signed into law in mid-2025.
In summary, Moriarty has won her lawsuit asserting the TLC improperly changed rules post-drawing regarding courier-bought tickets. The TLC will pay Moriarty nearly $46 million, and she will receive the settlement in a single lump-sum payment. The Texas Lottery Commission will pay $45.8 million (less taxes) to settle the lawsuit filed by Kristen Moriarty.
In the wake of the lawsuit, the Texas Lottery Commission (TLC) agreed to pay Moriarty's $46 million jackpot, indicating a recognition of the inappropriateness of altering rules retroactively in the finance sector, specifically the fintech industry, where lottery ticket courier services operate. However, following this controversy, the TLC was disbanded, and the use of lottery couriers was banned in Texas, resulting in a revamp of state lottery operations by new legislation.
