The commission received a more than $100,000 penalty that could have put a dent in student scholarships.
But when attorney Carrold Ray heard the commission's dilemma, he got his firm to take the case at no cost, and got a reversal on the penalty.
Lottery Director Bishop Woosley says it wasn't anything that was done on purpose.
"The newness and fast pace of the start-up caused us to inadvertently violate some of the deposit policies of the IRS," Woosley says.
Now that money will go back into the scholarship fund for students.