AUSTIN (Nexstar) — Clark E. Smith resigned from his position on the Texas Lottery Commission (TLC) as the agency faces a sunset review and growing pressure from state lawmakers to ban lottery couriers from doing business in the Lone Star State.

A spokesperson for the TLC confirmed Smith resigned on Feb. 21. The spokesperson did not provide any other information as to why the commissioner resigned from his position. We tried reaching Smith at his Vela Wood law firm email, of which he is a partner but received an automated response saying he was on vacation until Monday.

Gov. Greg Abbott appointed Smith to the commission in November 2023 to serve a term that would have expired in February of 2029, according to a news release from the governor’s office.

On Feb. 12, TLC Commissioners and its executive director faced questions from Texas Senators during a Senate Finance Committee meeting about lottery courier services. Senators called on the commission to take action to ban services that allow players to buy tickets through a courier.

Lawmakers are also concerned with how the commission facilitated a single entity to purchase nearly $26 million dollars in lottery tickets that nearly guaranteed a $95 million jackpot in April 2023. A Houston lawyer made allegations during the meeting that the TLC, the former executive director of the agency, and a courier called Lottery.com, conspired to defraud Texas lottery players for years.

A spokesperson for Lottery.com responded to the allegations saying, “Lottery.com completely cleaned house in late 2022 replacing its entire board of directors and executive management team. No current officer of the Company was in an executive role during the time any of the alleged events took place, which were raised during a meeting for the Texas Senate Committee on Finance on February 12, 2025. The Company has and continues to fully cooperate with all federal, state and local authorities with respect to any investigations into the Company’s past business practices. The Company’s current management remains dedicated to acting with integrity and in full compliance with laws governing responsible gaming to create value for all its shareholders.”

Commissioners told senators during the meeting they did not have the authority to ban lottery couriers, but lawmakers were not buying it.

Senators question commissioners

Caption: The above video shows Texas Senator Bob Hall questioning Texas Lottery Commissioner Clark E. Smith.

Sen. Bob Hall, R – Edgewood, read from the State Lottery Act during the meeting and focused specifically on a section of the law that deals with rules. The rules say the commission shall adopt rules that govern the “enforcement of prohibitions on a person playing a lottery game by telephone.”

“How do you interpret that you don’t have the authority to do it, when it says here specifically, in words of very small syllables, that you are specifically supposed to do these two things, and you have a discussion and you give direction to not do them. Please explain that to us,” Sen. Hall questioned the commissioners during the meeting.

Smith responded to the senator saying the commission’s discussion did not get “granular” and did not involve looking at the Lottery Act, but did say it was time to seek an opinion from Attorney General Ken Paxton’s office to see what authority the commission has.

“You just told me you didn’t think it important to refer to the legislation that is the basic guide by which you’re to operate in making a decision? You have got to be kidding me,” Sen. Hall said in response.

Smith responded by saying he did not mean to say that, but Hall followed by asking if the commission purposely ignored it. Smith responded by saying, “Apologies.” The TLC did seek an opinion from the AG on Feb. 14.

What’s next?

The Lottery Commission is expected to provide testimony to the House Appropriations Committee on Monday morning. Later in the day, the Senate State Affairs Committee will discuss legislation from Sen. Hall that would create criminal offenses for anyone facilitating or playing the lottery through the internet or on a mobile phone.

The legislation was refiled as a priority Senate bill. Lt. Gov. Dan Patrick told KXAN last week the lottery commission will end if mobile lottery applications are not banned.

The Texas Lottery Commission is conducting internal investigations to assess the scope of lawmaker’s concerns. The commission is in the process of a sunset review, which is the process that assesses the needs of a state agency. Lawmakers will decide if the agency will continue to exist.