That I've heard, this strategy has been well-known (and occasionally used) for at least a few decades. It only works in fairly-rare circumstances, it's a huge effort to run, and you gotta put a whole lotta $millions at risk to use it. The house (state lottery system) wins big regardless, and both tiny errors and bad luck can stick you with a multi-$million loss.
Points of Texas state law and publicly perceived "lottery fairness" aside, I don't see any real problem here.