In Re ColossusBets Limited; Rook TX, LP; Rook GP, LLC; Qawi and Quddus, Inc.; And Lottery Now, Inc. v. the State of Texas

CourtCourt of Appeals of Texas
DecidedFebruary 12, 2026
Docket15-25-00150-CV
StatusPublished

This text of In Re ColossusBets Limited; Rook TX, LP; Rook GP, LLC; Qawi and Quddus, Inc.; And Lottery Now, Inc. v. the State of Texas (In Re ColossusBets Limited; Rook TX, LP; Rook GP, LLC; Qawi and Quddus, Inc.; And Lottery Now, Inc. v. the State of Texas) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In Re ColossusBets Limited; Rook TX, LP; Rook GP, LLC; Qawi and Quddus, Inc.; And Lottery Now, Inc. v. the State of Texas, (Tex. Ct. App. 2026).

Opinion

Denied and Opinion filed February 12, 2026

In The

Fifteenth Court of Appeals

NO. 15-25-00150-CV

IN RE COLOSSUSBETS LIMITED; ROOK TX, LP; ROOK GP, LLC; QAWI AND QUDDUS, INC; LOTTERY NOW, INC.

Original Proceeding from the Business Court Division 3A Travis County, Texas Trial Court Cause No. 25-BC03A-0007

OPINION

When a case is removed to the Business Court, can a plaintiff compel remand by nonsuiting all claims falling within that court’s statutory jurisdiction? Or is removal a “one-way door” that when properly invoked, “no later fact or event can defeat the court’s jurisdiction”1?

This is an important question, one that applies to many Business Court cases,

1 See Cont’l Coffee Products Co. v. Cazarez, 937 S.W.2d 444, 449 (Tex. 1996) (“As a general rule, where jurisdiction is once lawfully and properly acquired, no later fact or event can defeat the court’s jurisdiction.”). is not directly addressed in the rules governing the Business Court, and will occur repeatedly if not answered. Those considerations warrant mandamus review:

Mandamus review of significant rulings in exceptional cases may be essential to preserve important substantive and procedural rights from impairment or loss, allow the appellate courts to give needed and helpful direction to the law that would otherwise prove elusive in appeals from final judgments, and spare private parties and the public the time and money utterly wasted enduring eventual reversal of improperly conducted proceedings.2

Accordingly, without hearing oral argument,3 we deny the requested relief.

Background In this unusual case, the winner of one Lotto Texas jackpot blames the winner of a previous one for reducing his winnings. Plaintiff/Real Party Jerry Reed won $7.5 million in the Lotto drawing held on May 17, 2023. But he alleges the Relators, alleged as affiliated entities and individuals, “rigged” a drawing 26 days earlier by purchasing “nearly all 25.8 million number combinations,” collecting $95 million, and substantially reducing subsequent jackpots like the one Reed later won. Reed alleged claims of money had and received, statutory violations of the State Lottery Act and related regulations,4 and a string of derivative claims making all Defendants jointly and severally liable.

Two Defendants removed the case to the Business Court,5 whose jurisdiction

2 In re Prudential Ins. Co. of Am., 148 S.W.3d 124, 136 (Tex. 2004) 3 See TEX. R. APP. P. 52.8(b), (d). 4 See TEX. GOV’T CODE ch. 466 and 16 TEX. ADMIN. CODE ch. 140. 5 Defendants Rook TX, LP and Rook GP, LLC removed this case to the Business Court and opposed Reed’s motions to remand. This petition was filed by Defendant ColussusBets Limited, one of the eleven Defendants who were parties in suit below, who were alleged to be jointly and severally liable, and who are bound by the remand order at issue. Reed recently informed us that he nonsuited his claims against ColossusBets. But the Rook parties and defendants Qawi and 2 includes actions “regarding the governance, governing documents, or internal affairs of an organization.”6 The Honorable Melissa Andrews, Judge of the Texas Business Court, Third Division initially denied remand, citing Reed’s claims that (1) the entity claiming the prize was created for the unlawful purpose of rigging the lottery and concealing the identities of those involved; (2) the Defendants misrepresented that the entity claiming the prize was formed before the drawing was held when it was not; and (3) all Defendants were alleged to be “jointly and severally liable” for Reed’s “financial injury.”

To avoid remand, Reed amended his petition twice in the next two months, the last of which stated that he “expressly disclaims any allegation, legal theory, or request for relief” implicating the Business Court’s jurisdiction. Eight minutes later, he filed a “Renewed Motion to Remand” citing his removal of “all allegations that would require adjudication of corporate governance, governing documents, or internal affairs.” The Defendants conceded Reed had dropped all claims regarding the purpose and timing of corporate formation, but urged the court to retain the case based on its jurisdiction of trade regulation laws,7 qualified transactions,8 or supplemental jurisdiction.9 Upon reconsideration, the Business Court rejected those alleged grounds for retaining the case in a detailed 19-page opinion, and remanded the case to the Travis County district court.

The question before us is not whether the court’s legal analysis of Reed’s slimmed-down claims was correct. Relator ColossusBets Limited waived that issue

Quddus, Inc. and Lottery Now, Inc. filed an unopposed motion to join this mandamus proceeding, which we granted. See TEX. R. APP. P. 9.7. 6 TEX. GOV’T CODE § 25A.004(b)(2). 7 See id. § 25A.004(b)(3). 8 See id. § 25A.004(d)(1). 9 See id. § 25A.004(f).

3 in a footnote in its Petition (which all Relators have adopted) that assumes “for sake of argument that there is no independent basis for Business Court jurisdiction.” Relators instead seek mandamus based “only on the procedural question whether jurisdiction, once exercised, can be lost.” Relators argue that the Business Court’s initial denial of remand cannot be reconsidered based on “a blatantly forum- shopping pleading amendment that sought to divest the court of jurisdiction.”

Analysis A. Can the Business Court reconsider an order denying remand? The general answer to Relators’ question is clear: “A trial court’s plenary jurisdiction gives it not only the authority but the responsibility to review any pre- trial order upon proper motion.”10 Absent a specific legal bar to reconsideration, this is inherent in the definition of a trial court’s “plenary jurisdiction”: “A court’s full and absolute power over the subject matter and the parties in a case.”11 In Texas, that includes our lenient pleadings rules, which generally allow parties to amend their pleadings as often as they wish, and absent proof of surprise or a court scheduling order, they can do so until seven days before trial.12 This rule is incorporated into the procedural rules applicable to the Business Court.13

Frequent reconsideration of prior orders is often unproductive, and particular laws or rules may limit reconsideration in special cases, though few actually do. The primary exception is an order granting or denying a motion to transfer venue; for the

10 Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241 (Tex. 1985) (emphasis added). 11 See Plenary Jurisdiction, BLACK’S LAW DICTIONARY (12th ed. 2024). 12 See TEX. R. CIV. P. 63. 13 See id. R. 352.

4 historical reasons we recently explained,14 no reconsideration of such orders is allowed until a final appeal.15 But the trend is strongly against hobbling trial courts with prior orders that trial judges may recognize were mistaken.

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In Re ColossusBets Limited; Rook TX, LP; Rook GP, LLC; Qawi and Quddus, Inc.; And Lottery Now, Inc. v. the State of Texas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-colossusbets-limited-rook-tx-lp-rook-gp-llc-qawi-and-quddus-texapp-2026.