Texas Lottery and jackpot winner reach a settlement following months of legal strife

By Kate Northrop

The winner of the $83.5 million Lotto Texas jackpot from February will finally be awarded her prize by the Texas Lottery after months of wondering whether she would even see a penny.

The Texas Lottery will pay a Houston-area woman her rightful $83.5 million prize after withholding it for months due to ongoing state investigations.

It's been a whirlwind of controversy and national attention for the Texas Lottery ever since an international entity purchased nearly every single number combination with the help of several lottery couriers to win a $95 million Lotto Texas jackpot. Following the Lottery's ban on couriers, multiple state investigations, and the impending dissolution of the Texas Lottery Commission, there's finally one legal battle that the Lottery can put to rest before its oversight is transferred to another state department.

In February, a mother of two purchased a lottery ticket through a lottery courier, which was allowed under Texas Lottery rules at the time, and won an $83.5 million Lotto Texas jackpot. The win triggered alarm bells with state lawmakers, who were already on high alert following the $95 million jackpot buyout.

Unfortunately for the winner, her win became lumped in with the controversy surrounding the $95 million jackpot buyout scheme simply because she purchased her ticket with a courier. When she presented her winning ticket to the Texas Lottery, she was denied the payout and not given any indication of if or when she would see a dime at all.

She took to news outlets, both local and national, to broadcast her story in hopes of putting pressure on the agency for a resolution. She then sued the Texas Lottery and Acting Deputy Executive Director Sergio Rey for the unpaid prize under the pseudonym "Jane Doe" in legal proceedings.

"Tired of being ignored" as time ticked by, the winner was not about to let her story fizzle out. She revealed her identity to be Kristen Moriarty in a bid to draw more attention to her ongoing legal battle for the infamous jackpot.

On July 29, Moriarty's lawyer Randy Howry notified Lottery Post and other media channels that a hearing was scheduled for Aug. 1 in Travis County 345th District Court. However, the hearing was delayed and finally cancelled after she and the Texas Lottery reached an agreement resulting in the payout of her prize.

As part of the settlement, Moriarty will be paid out the $83.5 million Lotto Texas jackpot as a $45.8 million cash option. She'll receive the amount via direct deposit to the Trust Account of her attorneys on or before Aug. 7, 2025, but the total winnings placed in the account will come to approximately $34.87 million after $11 million is deducted for taxes.

In return, Moriarty will dismiss her lawsuit upon receipt of payment or no later than Aug. 11, 2025. The winner will waive Rey and the Lottery from "any and all claims she now has or may have in the future arising from or related to the February 17, 2025 Lotto Texas drawing," the agreement letter reads.