Denied $83.5 Million: The Shocking Legal Battle Of The Texas Lottery Winner Who Fought The Commission And Won
The dream of winning the lottery quickly turned into a nightmare for one Texas resident, Kristen Moriarty, whose $83.5 million jackpot was wrongfully withheld for months, forcing her into a high-stakes legal battle with the Texas Lottery Commission (TLC). As of late
The lawsuit, filed in a Travis County District Court, centered on the commission's refusal to honor a winning ticket purchased through a third-party courier service, sparking a months-long legal fight over the unpaid prize. Moriarty’s perseverance ultimately paid off, securing a settlement that grants her the full value of the jackpot, though the emotional and financial toll of being a "wrongfully denied" winner has been immense, leaving her feeling "sad, stressed, angry" during the ordeal.
Kristen Moriarty: Profile of the $83.5 Million Winner
Kristen Moriarty, a Houston-area resident and the central figure in this landmark Texas lottery lawsuit, became an overnight millionaire—at least on paper—when she purchased a winning Lotto Texas ticket in February 2025.
- Name: Kristen Moriarty
- Location: Houston-area resident (Montgomery County winner)
- Jackpot Won: $83.5 Million (Lotto Texas)
- Date of Win: February 2025
- Opposing Party: Texas Lottery Commission (TLC) and Acting Deputy Executive Director Sergio Rey
- Claim: Wrongful denial of prize money after purchasing the ticket via a third-party courier service.
- Outcome: Settlement reached in November 2025, confirming she will be paid the prize.
- Net Payout: Approximately $46 million (the cash option amount).
Moriarty’s case became a critical test of the state’s rules regarding third-party lottery courier services, a modern method of purchasing tickets that the TLC initially questioned. The commission’s denial of the prize money led to a six-month legal battle, with a state judge in Travis County eventually ordering the TLC to protect the disputed $83.5 million until the matter was resolved.
The Core Dispute: Third-Party Couriers and Lottery Integrity
The primary reason the Texas Lottery Commission withheld Moriarty's winnings stemmed from the method of purchase. Moriarty had used a third-party lottery courier service to buy her ticket, a practice that allows consumers to purchase lottery tickets online, with a courier physically buying the ticket on their behalf.
The TLC, facing scrutiny from an unrelated April 2023 drawing controversy, was cautious about the legitimacy of the win. The commission’s investigation and subsequent refusal to pay led Moriarty to sue the TLC and its acting deputy executive director, Sergio Rey, in May 2025. Her lawsuit alleged that the commission was refusing to honor her valid winning ticket.
The legal challenge highlighted the complex and evolving landscape of lottery sales in the digital age. While the courier service model is popular, the TLC’s reluctance demonstrated a concern over how these transactions fit within the established legal framework for claiming a prize. The lawsuit was a significant source of stress for Moriarty, who was left "sad, stressed, angry" while her life-changing fortune remained in limbo.
Ultimately, the settlement in November 2025, reached with guidance from the Attorney General Ken Paxton’s office, confirmed Moriarty as the rightful winner. She is set to receive the cash option of $83.5 million, which amounts to nearly $46 million before taxes. This outcome reaffirms the validity of tickets purchased through authorized channels, even third-party courier services, and closes a tumultuous chapter for the Houston-area resident.
The Broader Scandal: A $95 Million Rigging Allegation
The Moriarty lawsuit did not occur in a vacuum. The Texas Lottery Commission was already under intense scrutiny from an entirely separate, and far larger, controversy involving allegations of fraud and a potential rigging scandal. This background context added pressure to the TLC's handling of Moriarty's claim, as public trust in the lottery system was already wavering.
A separate case, now being heard in the new Texas Business Court, involves a winner named Jerry Reed. Reed won a $7.5 million Lotto Texas jackpot in May 2023 but is suing, claiming his prize should have been $95 million higher due to alleged manipulation within the system.
Key Entities and Allegations in the Rigging Lawsuit:
- Plaintiff: Jerry Reed (Lotto Texas Winner)
- Alleged Jackpot Loss: $95 million
- Defendants: Former Texas Lottery Director Gary Grief and executives from Lottery.com
- Central Claim: The lawsuit accuses the defendants of manipulating the Texas Lottery System to ensure a "fraudulent win" in a previous drawing.
- Legal Basis: Allegations of securing a lottery prize by means of "fraud, deceit, or misrepresentation."
This ongoing litigation suggests a deep-seated problem within the Texas Lottery’s operations. The lawsuit claims that the manipulation resulted in a fraudulent win, directly impacting the pool of prize money and, consequently, the payout for subsequent winners like Jerry Reed.
Implications for Future Texas Lottery Winners
The resolution of the Kristen Moriarty case sets a crucial legal precedent for future Texas lottery winners, particularly those who utilize third-party courier services. The settlement ensures that the method of purchase, provided it is through a legitimate service, cannot be used as a blanket reason to deny a valid jackpot. This clarity is vital for consumer confidence and the future of online lottery ticket sales in the state.
However, the existence of the $95 million rigging lawsuit, which involves allegations against a former director and lottery executives, casts a long shadow. This separate legal challenge indicates that the Texas Lottery Commission may face continued legal disputes and calls for greater transparency and oversight to restore public trust. The term "wrongfully denied winnings" has become a potent phrase in Texas, illustrating the legal and emotional turmoil that can follow even a life-changing win.
For individuals dreaming of a Lotto Texas jackpot, these cases serve as a sobering reminder that a lottery win is not always a straightforward path to riches. The legal battles highlight the importance of documented transactions, legal representation, and the potential need to fight the very commission established to pay out the prizes. The Moriarty case is a victory for the individual against a state agency, but the fight for full accountability in the Texas Lottery system continues.
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