WLA Warns Lotteries of Bulk-Buying Syndicates After Texas Jackpot Scandal

The Texas Takedown: A Case Study in Exploitation

The WLA’s position paper centers on the February 2023 Lotto Texas jackpot. A syndicate organized by international players, including the London-based White Swan Data, spent $25.8 million to purchase 99.3% of the game’s 25.8 million possible number combinations.

The group used courier-affiliated retailers to print a staggering number of tickets, scanning QR codes into lottery terminals with iPads and iPhones to average 100 tickets per second.

The scheme was so extensive that the Texas Lottery Commission (TLC) itself provided 40 additional terminals and pallets of paper to just four storefronts to facilitate the sales. The syndicate claimed the $95 million jackpot, plus millions more in lower-tier prizes, through a Delaware-based company named RookTX.

The fallout was dramatic and unprecedented. A legislative review found that the TLC had facilitated the courier activities, violating state law. This led to the Texas legislature abolishing the TLC entirely, moving its operations to a different state department. The state also passed a new law banning courier services, prohibiting bulk ticket purchases, and setting criminal penalties for violations. The TLC’s executive director resigned, and the Texas Rangers launched a criminal investigation.

A Threat to Lottery Integrity

The WLA argues that the Texas incident is not a theoretical risk but a clear demonstration of the damage bulk sales can inflict on a lottery’s credibility. The association says that when lotteries allow or facilitate these schemes, they leave themselves open to serious accusations.

These include false advertising, as other players have no real chance of winning the full announced jackpot. It also raises concerns about money laundering, as there is no oversight on the source of the massive funds used for the purchases. Furthermore, it undermines age verification rules and allows for the unauthorized use of a lottery’s brand on international websites.

The WLA emphasizes that this is a global issue, often involving the same network of individuals. The report cites several other examples of syndicate activity, including a $60 million jackpot win in Germany in 2022 by an Australian group and a 2025 attempt in Switzerland that was partially blocked by a vigilant lottery operator.

In the US, a group of Princeton graduates operating as “Black Swan” has also had numerous wins across multiple states.

A Three-Pronged Solution

While the WLA acknowledges that regulating courier services is a local policy decision, it strongly recommends a three-pronged approach for any jurisdiction that permits them. This “best practice” framework is designed to protect lotteries from exploitation.

First, couriers themselves must be regulated with strict rules on ticket ordering, age verification, and background checks. Second, retailers must have limits on the number of terminals they can operate and systems to flag unusual sales volumes. Third, lotteries must design games to be less vulnerable to bulk buys, monitor sales patterns, and, crucially, not directly collaborate with syndicates.

The WLA’s message is clear: lotteries must adapt to this new high-tech threat.