After enduring months of delays, legal uncertainty, and political scrutiny, Houston-area resident Kristen Moriarty will finally receive her $83.5 million Lotto Texas prize. The Texas Lottery Commission agreed to settle the dispute and pay Moriarty $45.8 million before taxes in a lump sum, following court filings and coordination with the office of Attorney General Ken Paxton.
The win, drawn on February 17, was clouded by controversy after Moriarty bought her ticket using Jackpocket, an online lottery courier service. Despite the ticket being legitimate, the payout was held back due to state investigations into the legality of such services. Moriarty later filed a lawsuit in May to claim her winnings, which she said were unfairly delayed.
“I’m sad, stressed, angry that this has become a political thing,”Moriarty told The Texas Tribune in June. “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.”
Legal Battle Triggers Broader Crackdown on Lottery Couriers
Moriarty’s jackpot came at a time when Texas lawmakers were already questioning the role of digital lottery couriers. State investigations were launched by the Department of Public Safety and the Attorney General’s office following the revelation that a courier-based group had used 99% of all number combinations to guarantee a $95 million win in 2023.
This prompted swift legislative changes: Texas not only banned courier services altogether but also imposed a cap of 100 tickets per purchase. Lieutenant Governor Dan Patrick was among the critics, releasing a video denouncing couriers shortly after Moriarty’s win at Winner’s Corner, the retailer connected to her purchase.
Unlike the 2023 group scheme, Moriarty had only bought a handful of tickets on her own. Still, her case became entangled in the fallout, with the Texas Lottery refusing to release the prize until legal questions were resolved.
Settlement Marks Closure for a Collapsing Commission
The resolution arrived on July 30, when Moriarty’s attorneys and Assistant Attorney General Joe Nwaokoro submitted a letter outlining the settlement terms to the Travis County District Court. In exchange for the $45.8 million payout, Moriarty agreed to dismiss her lawsuit with prejudice. After taxes, about $11 million will go directly to the IRS.
Her case wasn’t the only legal entanglement the commission faced. Another courier company, Lotto.com, sued the agency in April, claiming it had been misled after officials allegedly acknowledged their operations yet abruptly changed course. That case was dropped in late May—just after the Texas Legislature voted to dissolve the Lottery Commission.
As part of a sweeping overhaul, theTexas Lottery Commission will be officially disbanded on September 1. Its responsibilities will shift to the Texas Department of Licensing and Regulation, though how the new agency will handle similar matters remains unclear.
“This settlement ends one of the last major controversies facing the Texas Lottery,” signaling a dramatic close to the agency’s tenure amid legal upheaval and administrative change.
Source:
“Texas Lottery to pay winner of $83.5M jackpot after withholding prize for months”, texastribune.org, Aug 1, 2025
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