Texas lawsuit against Lottery.com voluntarily dropped by plaintiff

A civil lawsuit filed in Texas against digital lottery company Lottery.com Inc. was voluntarily dismissed by the plaintiff last week. The development comes amid the company’s ongoing efforts to restructure and relaunch its brand.

Plaintiff Dawn Nettles filed a notice on May 30 indicating that she was “taking a Nonsuit Without Prejudice Against All Parties Effective Immediately,” effectively ending the case under Texas Rule of Civil Procedure 162. The move terminates Case No. 25-BC11A-0026, which had been pending in Business Court Division 11a after being initially filed in the 333rd District Court in Harris County.

The suit had alleged misconduct related to Lottery.com’s operations in Texas, but the company has maintained throughout the proceedings that the claims were unfounded.

Filed on 14 February 2025, the lawsuit accused the lottery courier, the Texas Lottery Commission, and its then-Executive Director, Gary Grief, of engaging in what it called ‘systemic fraud’. As per the suit, the alleged fraud consisted of “misappropriating lottery funds, illegally selling tickets across state lines, and manipulating the outcome of lottery games, including but not limited to the April 22, 2023, Lotto Texas drawing”.

The drawing was an infamous incident in April 2023 in which a group of individuals purchased 99% of the roughly 26 million possible combinations in that month’s jackpot draw.

“We believe the decision to seek a voluntary dismissal speaks to the lack of any evidence that Lottery.com was engaged in any wrongdoing,” said Gregory Potts, Chief Operating Officer of Lottery.com.

“We have fully cooperated with all investigations into the April 2023 Lotto Texas drawing, and to my knowledge, there has been no finding against the company of any of the activities claimed in this lawsuit,” Potts added.

Potts noted that continuing to litigate the matter would have required diverting resources away from the company’s strategic priorities. “Defending the company in this case would have required us to allocate resources that are better spent on delivering shareholder value,” he said.

The dismissal comes as Lottery.com advances a broader corporate turnaround. The company secured an $18 million investment in late 2023 and has since launched a brand activation campaign that included sponsoring IndyCar drivers Callum Ilott and Louis Foster through its Lottery.com and Sports.com platforms.

Commenting on the plaintiff, Potts said: “She is a long-time advocate for the fair and transparent operation of Texas lottery games, a belief shared by our company, Lottery.com.”

The company said it views the dismissal as an important step toward restoring investor confidence and positioning its brands for long-term growth.