Texas Lawmakers Votes to Change State Lottery, Appoint New Leaders
A bill passed in the Texas Senate would eliminate the State Lottery commission and hand the responsibility for that activity to a separate regulatory agency. The bill also would prohibit lottery courier services and restrict online lottery sales.
Texas Votes to Alter State Lottery
Key Facts:
- Texas State Lottery will be folded into the Department of Licensing and Regulation
- Texas State Senate passed legislation to change the way the lottery is regulated by a vote of 31-0
- Bill would criminalize online lottery play and prohibit lottery courier services
- House will now address the bill with possible vote soon
The Texas Senate unanimously voted to dismantle the Texas Lottery Commission but keep the state lottery alive under a new regulatory body, signaling a major shift in oversight and stricter operational rules.
The legislation, Senate Bill 3070, introduced by Sen. Bob Hall, received full support from the Senate in a 31-0 vote last week. Under the bill, responsibility for regulating lottery operations would transfer from the embattled Lottery Commission to the Texas Department of Licensing and Regulation (TDLR).
Lt. Governor Dan Patrick is lined up in favor of the legislation, which would essentially make him the lottery czar in the second-most populous state.
The House quickly moved to consider the bill, referring it to the committee for expedited review. Legislators face a tight timeline, needing to pass the measure before the legislative session concludes on June 2. If missed, the bill will stall for at least two years.
SB 3070 emerged as a compromise after Sen. Hall previously proposed abolishing lottery gaming entirely through SB 1988. Instead, this new measure tightens lottery regulations, criminalizing online ticket purchases and limiting retail sales to no more than 100 tickets per customer transaction.
Notably, the bill explicitly bans controversial lottery courier services and restricts the number of ticket-printing terminals at retail locations in Texas.
These stringent provisions were developed partly in response to a 2023 lottery scandal involving a syndicate that secured a $95 million jackpot after spending approximately $25 million to buy nearly all possible ticket combinations. The incident sparked intense media attention and scrutiny in Austin.
Four amendments, all introduced by Hall, were incorporated into SB 3070 before the Senate’s approval. These amendments further tighten ticket-purchase restrictions and mandate transparent auditing processes. Whether those amendments can survive the tinkering hands of the Texas House of Representatives remains to be seen.
While the lottery will continue for now, its long-term future remains uncertain. Lt. Gov. Dan Patrick described the arrangement as a two-year trial period, after which a sunset review scheduled for August 31, 2027, will determine whether the lottery continues or is terminated altogether. Losing the lottery would cost Texas approximately $2 billion annually in state revenue.
In a video released via social media, Patrick emphasized that the lottery’s continued existence under the TDLR will depend on effective and transparent management.
“We’re going to give the extension to the game to the TDLR,” Patrick stated. “They will oversee it with a brand-new leadership team and new guardrails… We can ban it in two years if the TDLR does not operate it as we instruct them to.”
Another significant provision authorizes high-ranking officials, including the governor, lieutenant governor, and attorney general, to conduct unannounced inspections of lottery retail outlets. This measure stems directly from Patrick’s frustration earlier this year when he attempted an inspection at Winner’s Corner, the retailer owned by Jackpocket that sold an $83.5 million winning ticket. Patrick alleged he was denied adequate access to scrutinize the store’s operations.
“Now, I’ll be a lottery inspector, and I can drop in and go anywhere I want to make sure everything is on the up and up,” Patrick asserted in the same social media video. He further stated the incident at Winner’s Corner prompted a broader examination of “alleged corruption” within the Lottery Commission.
“I promised you that if we couldn’t guarantee the lottery commission was an operation we could trust, we would eliminate it,” Patrick added. “That’s what we did today.”
Governor Greg Abbott has maintained tacit support for legalizing online casinos in Texas; however, he faces significant resistance from Lt. Gov. Patrick and conservative Republican legislators. Despite being the nation’s second-largest state, Texas remains one of the few without legalized online sports betting or iGaming, reflecting entrenched conservative opposition to gambling expansion.
