Texas Lawsuit Against Lottery.com Dropped by Plaintiff

Case Closed, For Now

Dawn Nettles, a longtime lottery watchdog, pulled the plug on her class-action lawsuit against Lottery.com. Filed in Harris County’s 333rd District Court and later moved to a business court, the suit claimed Lottery.com, former Texas Lottery boss Gary Grief, and a Delaware outfit called Rook TX LP were neck-deep in fraud, skimming lottery funds, selling tickets out-of-state, and rigging games.

Nettles’ filing, a “Nonsuit Without Prejudice,” means she can refile later, but for now, the case is dead. Lottery.com didn’t even respond to the suit, dodging a potential default ruling.

The heart of the case was a $95 million Lotto Texas win in April 2023 by Rook TX LP. The New York Times reported Rook spent $25 million buying tickets for nearly every number combo, cashing out a $57.8 million lump sum before taxes.

Nettles called Rook a front for “laundering stolen lottery funds,” tying it to Lottery.com’s courier service, which lets folks buy tickets online through in-store agents.

That practice, long debated in Texas, is set to be banned by Senate Bill 3070, spurred by controversies like this. Another suit by Jerry Reed, naming the same defendants, is still alive, claiming Lottery.com teamed with bookies for the mass buy.

Lottery.com’s Take

Lottery.com’s COO, Gregory Potts, didn’t hide his relief. “We believe the decision to seek a voluntary dismissal speaks to the lack of any evidence that Lottery.com was engaged in any wrongdoing,” he said.

Potts, who met Nettles earlier in 2025, called her a “long-time advocate for the fair and transparent operation of Texas lottery games,” a goal he says Lottery.com shares.

He noted the company cooperated fully with probes into the 2023 drawing, with no findings against them. Defending the suit, Potts added, would’ve drained resources better spent on growth.

The dismissal comes as Lottery.com pushes a relaunch after snagging $18 million in funding late 2023. Potts sees it as a step toward rebuilding investor trust, especially after three separate federal lawsuits in Texas were dismissed with prejudice, per CEO Matthew McGahan: “Receiving these favorable judgments allows us to focus our resources on resuming gaming operations.”