"Searching for a scapegoat": Lottery industry pioneer continues to face first-degree felony charge

By Kate Northrop

Former Texas Lottery Executive Director Gary Grief appeared in a Travis County courtroom on Friday, as state officials continue to hash out the results of a $95 million Lotto Texas jackpot purchasing event.

As the $95 million jackpot buyout continues to work its way through Texas state courts, in which a judge on Friday set the bond of the former Texas Lottery head at $10,000.

Grief voluntarily reported for booking following the hearing rather than wait for law enforcement to initiate the arrest, according to Texas Scorecard. Another pre-trial hearing has been set for Dec. 18.

His appearance marks the latest development in a case first surfaced in April of this year, when a Travis County grand jury indicted Grief on a first-degree felony charge of abuse of official capacity involving $300,000 or more. The original indictment was dismissed three days after it was filed, only to be reindicted a week later by a second grand jury on substantially the same charge. The now-defunct Texas Lottery Commission was also named in the reindictment, specifically commissioners Ed Rogers and Clay Kidd. Rogers passed away in 2024.

The charges stem from the April 22, 2023 Lotto Texas drawing, in which a New Jersey-based entity called Rook TX spent approximately $26 million to purchase nearly every single number combination to just about guarantee a win.

It stirred a controversy among state officials, who pondered whether the massive undertaking was an elaborate money laundering scheme, but those suspicions quietly faded without any concrete evidence.

Instead, lawmakers focused on making the central question whether Lottery officials improperly assisted the bulk-purchasing effort, despite the Texas Lottery operating within defined parameters at the time. More precisely, the Lottery responded to requests for additional terminals to print a greater volume of tickets at several licensed retailer locations.

It ultimately prompted an investigation by the Texas Rangers, which led to criminal charges against Grief.

In the reindictment filed at the end of April, the Travis County District Attorney's Offices accuses both Grief and the organization of intending to "harm and defraud" in their leadership capacity, "intentionally and knowingly misus[ing] government property, services and personnel" to do so.

Grief continues to deny any wrongdoing.

"The product of politics, not facts demonstrating a crime," Grief's attorney Sam Bassett has called the indictment.

Bassett previously told The New York Times that his client has been "nothing but transparent and cooperative" with the Texas Rangers throughout their investigation of the 2023 drawing, and that the case was the result of politicians "searching for a scapegoat."

"When all facts are revealed in court, the public will see that Gary's leadership at the Lottery Commission generated millions of dollars for Texas schools and veterans and there was no crime," Bassett said in a statement to the paper.

Grief's next pre-trial hearing is scheduled for Dec. 18 in Travis County.

(Click to display full-size in gallery)Gary Grief faces charges as his lawyer calls out the process as a "product of politics" and a search for a scapegoat.