Texas Lottery Commissioner Resigns Amid Ongoing Scrutiny Over Courier Practices

AUSTIN, Texas – Texas Lottery Commissioner Clark E. Smith resigned effective February 21, 2025, as concerns over lottery courier practices intensify among lawmakers. Smith’s resignation came shortly after he and other officials faced tough questioning at a state Senate Finance Committee hearing regarding couriers that may potentially allow individuals to exploit the lottery system.

The Texas Lottery Commission confirmed Smith’s departure but did not disclose further details regarding his resignation. Smith, who was appointed by Governor Greg Abbott in late 2023, was set to serve until 2029. His resignation marks the second major leadership change within the commission in less than a year, following the resignation of former Executive Director Gary Grief.

During the Senate Finance Committee hearing, Smith expressed limited knowledge of state law governing the Texas Lottery, stating he was “generally familiar.” Senators raised alarms about the potential for abuse through courier services, which allow individuals to purchase lottery tickets online. A recent $95 million jackpot was won by several companies, including a courier service, for what critics call nearly exhaustive ticket purchases.

Lawmakers worry that couriers could enable illegal purchases by out-of-state residents and minors. Although the Texas Lottery Commission (TLC) cited a lack of legal authority to regulate couriers, they have made adjustments to address issues enabling companies to issue over 25 million tickets needed for the recent jackpot.

In February, another significant jackpot of $83.5 million was also won with a ticket purchased via a courier. Lt. Governor Dan Patrick has voiced concerns over the integrity of the lottery, reiterating his doubts during a visit to Winners Corner, a North Austin retailer known for selling high-value tickets.

The store operates as a lottery courier, allowing Texans to buy tickets online while representatives fulfill orders in person. During his visit, Patrick noted that the location actively printed lottery tickets behind the public-facing area, raising additional transparency concerns.

In response to growing scrutiny, legislation aimed at banning the use of couriers for lottery ticket sales is on the agenda for discussion in the Texas Senate. A public hearing for these proposals is scheduled for Monday.

Grief’s resignation in early 2024 followed allegations of fraud and misconduct related to courier operations. He faces a lawsuit claiming he intentionally aided courier companies. Grief denies any wrongdoing, asserting his commitment to the Texas Lottery’s integrity during his 15 years in leadership.

As the legislative session progresses, Texas officials are pressured to reform lottery regulations. A proposed Senate Bill 28 seeks to outlaw the sale of lottery tickets via apps or online services. If passed, this law would take effect September 1, 2025.

Patrick has cautioned against inaction, stating that without legislative approval, the future of the Texas Lottery may be at risk. “Every 12 years, agencies are up for sunset review. This time, the lottery is up for sunset,” he said, emphasizing the urgency for regulatory reform.

The Texas Lottery Commission is currently undergoing review by the Sunset Advisory Commission, which assesses the necessity of state agencies. The commission last faced a review in 2013, and the current public scrutiny may result in significant changes to how the Texas Lottery operates.