Texas Lawmakers Probe Alleged $95 Million Lotto Texas Jackpot Scheme
More than 18 months after first appearing at the Texas Capitol, Houston attorney Manfred Sternberg returned to lawmakers with a renewed call for action over an alleged scheme involving a $95 million Lotto Texas jackpot.
During a Texas Senate Committee on State Affairs hearing this week, Sternberg said he represents people who were harmed by the alleged conspiracy. Alongside State Senator Bob Hall, R-Edgewood, he accused an entity called Rook TX of buying millions of lottery tickets in an effort to nearly guarantee a winning ticket.
What Sternberg Alleges
According to Sternberg and Hall:
- Rook TX allegedly purchased millions of tickets for the April 2023 drawing.
- Officials allegedly helped four retailers obtain dozens of lottery terminals.
- Those machines reportedly printed millions of tickets within about 72 hours.
- Brightstar Lottery, formerly known as IGT, supplied and serviced the terminals.
Sternberg also accused Brightstar of knowing the alleged ticket-printing operation was improper and said the company earned about $700,000 in commissions from the sales.
He pointed to three Texas Lottery Commission letters stating that tickets sold at certain retailers for the April 2023 drawing were invalid. Sternberg argued that Brightstar should return the money it received from those sales.
Former Lottery Director Indicted
Gary Grief, the former director of the Texas Lottery Commission, was indicted by a Travis County grand jury on an abuse-of-official-capacity charge connected to the April 2023 drawing. His bond hearing is scheduled for October 16.
Sternberg previously joined a 2025 class-action lawsuit naming several people and organizations, including Brightstar. He later withdrew the case without prejudice, leaving open the possibility of filing it again.
Brightstar Denies Wrongdoing
Brightstar has rejected the allegations, saying it was simply carrying out instructions from the Texas Lottery Commission.
Company spokesperson Mike DeAngelis said Brightstar was contractually required to provide lottery terminals, paper, supplies and support to licensed retailers as directed by the commission.
The Texas Lottery Commission was dissolved under Senate Bill 3070 in 2025, with lottery oversight transferred to the Texas Department of Licensing and Regulation (TDLR).
Contract Extension Draws Attention
The 2025 law allowed TDLR to extend Brightstar's contract for up to two years, keeping the company under contract through August 2028. Hall authored the legislation.
Hall's chief of staff said the extension was intended to give the state enough time to select and potentially implement a new lottery contractor. TDLR is now accepting bids for lottery operations.
Hall and Senator Charles Perry, R-Lubbock, have warned TDLR officials to carefully consider Brightstar's future role.
Hall also said he plans to pursue abolishing the Texas Lottery during the 90th legislative session, which begins next January.
