Texas Lottery Gets Major Overhaul
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
The Texas Senate voted unanimously on Thursday to overhaul the state's lottery system, passing legislation that dismantles the Texas Lottery Commission and shifts oversight to a different state agency, the Texas Commission of Licensing and Regulation.
Why It Matters
The legislation comes amid mounting scrutiny over the Texas Lottery's management, particularly after incidents raised questions about oversight and public trust. The overhaul follows revelations that third-party brokers sold tickets via smartphone apps, and a recent $83.5 million jackpot win from a non-traditional retailer sparked additional concerns. Lawmakers said these practices could undermine confidence in a system that generated $8 billion in annual ticket sales and supports key public funds.
For an American audience, the reforms reflect broader national debates about public oversight, the integrity of state-run gambling, and the use of gaming revenue to support education and veterans' programs.
A lottery ticket on July 28, 2022, in Houston and (inset) the Texas state flag.
A lottery ticket on July 28, 2022, in Houston and (inset) the Texas state flag.
Brandon Bell/Mike Mulholland/GETTY
What To Know
Senate Bill 3070, authored by state Senator Bob Hall, replaced his original proposal to abolish the lottery with a plan to dissolve the Texas Lottery Commission instead. The Texas Commission of Licensing and Regulation would assume oversight, implementing new rules on retailers and players while expanding regulatory review.
The bill, advanced near the end of the legislative session, prevents the immediate abolition of the lottery and subjects its operations to close review for the next two years.
Lieutenant Governor Dan Patrick, who previously criticized the lottery's management, said that operators "have a two-year lease on life" following the 31-0 vote. The measure, refashioned from earlier proposals to abolish the lottery outright, now moves to the Texas House as the Legislature's session approaches its June 2 close.
The legislation bans third-party courier companies from selling tickets, responding to criticism that such sales violated the state's 1991 prohibition on telephone-based lottery sales. In 2024, third-party brokers reportedly accounted for about $229.4 million of the $8 billion in total lottery sales—about 2.7 percent of the market.
The new bill also restricts players to buying no more than 100 tickets per transaction, a move prompted by an incident in which a single entity purchased nearly every ticket combination for a large jackpot.
The Legislative Budget Board estimated that the bill could cost Texas roughly $26 million annually, stemming largely from lost sales as a result of the ban on third-party couriers and tighter restrictions on ticket purchases. Analysts said some sales may shift to in-person transactions but are unlikely to recoup the revenue gap.
The new law requires a fresh procurement process for operating the lottery. International Game Technology, historically the Texas lottery's primary vendor, earns about $160 million in annual revenues from the contract. Transition to a new arrangement is expected to involve major logistical challenges for the state and retail partners.
Reform discussions intensified after a highly publicized jackpot win by an app user, which officials said underscored risks of diminished oversight. Patrick cited the event as evidence that ticket distribution needed greater transparency and control to avoid undermining public faith in the lottery system.
In April, Ryan Mindell resigned as executive director of the Texas Lottery Commission following a series of scandals around the use of couriers. These third-party companies purchased lottery tickets on behalf of customers, which critics said facilitated the involvement of professional gamblers.
What People Are Saying
Lieutenant Governor Patrick, referring to Texans on Wednesday: "They like their Lotto and they like their scratch-off games. So, we're going to fix it."
Dawn Nettles, who has been monitoring the Texas lottery for 20 years, told the Austin American-Statesman: "It won't change anything unless they write laws forcing the lottery to follow, like limiting the number of draws each week, no anonymous claims, limiting the cost of tickets and a host of other things."
What Happens Next
The Senate-approved bill advances to the Texas House for further deliberation, with the session scheduled to end on June 2. If enacted, the law will initiate a two-year oversight period and a comprehensive review process, potentially leading to additional reforms or the lottery's discontinuation beyond September 2027.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
13 minutes ago
- San Francisco Chronicle
Israel backs an anti-Hamas armed group known for looting aid in Gaza. Here's what we know
JERUSALEM (AP) — Israel is supporting armed groups of Palestinians in Gaza in what it says is a move to counter Hamas. But officials from the U.N. and aid organizations say the military is allowing them to loot food and other supplies from their trucks. One self-styled militia, which calls itself the Popular Forces, led by Yasser Abu Shabab, says it is guarding newly created, Israeli-backed food distribution centers in southern Gaza. Aid workers say it has a long history of looting U.N. trucks. Gaza's armed groups have ties to powerful clans or extended families and often operate as criminal gangs. Aid workers allege Israel's backing of the groups is part of a wider effort to control all aid operations in the strip. Israel denies allowing looters to operate in areas it controls. Here's what we know about anti-Hamas armed groups in Gaza: Who are these groups? Prime Minister Benjamin Netanyahu said in a social media video Thursday that Israel had 'activated' clans in Gaza to oppose Hamas. He didn't elaborate how Israel is supporting them or what role Israel wants them to play. Netanyahu's comments were in response to a political opponent accusing him of arming 'crime families' in Gaza. Clans, tribes and extended families have strong influence in Gaza, where their leaders often help mediate disputes. Some have long been armed to protect their group's interests, and some have morphed into gangs involved in smuggling drugs or running protection rackets. After seizing power in 2007, Hamas clamped down on Gaza's gangs -- sometimes with brute force and sometimes by steering perks their way. But with Hamas' weakening power after 20 months of war with Israel, gangs have regained freedom to act. The leadership of a number of clans — including the clan from which the Abu Shabab group's members hail — have issued statements denouncing looting and cooperation with Israel. A self-proclaimed 'nationalist force' The Abu Shabab group went public in early May, declaring itself a 'nationalist force.' It said it was protecting aid, including around the food distribution hubs run by the Gaza Humanitarian Foundation, a mainly American private contractor that Israel intends to replace the U.N.-led aid network. Aid workers and Palestinians who know the group estimate it has several hundred fighters. The Abu Shabab group's media office told The Associated Press it was collaborating with GHF 'to ensure that the food and medicine reaches its beneficiaries.' It said it was not involved in distribution, but that its fighters secured the surroundings of distribution centers run by GHF inside military-controlled zones in the Rafah area. A spokesperson with GHF said it had 'no collaboration' with Abu Shabab. 'We do have local Palestinian workers we are very proud of, but none is armed, and they do not belong to Abu Shabab's organization,' the spokesperson said, speaking on condition of anonymity in accordance with the group's rules. Before the war, Yasser Abu Shabab was involved in smuggling cigarettes and drugs from Egypt and Israel into Gaza through crossings and tunnels, according to two members of his extended family, one of whom was once part of his group. Hamas arrested Abu Shabab but freed him from prison along with most other inmates when the war began in October 2023, they said, speaking on condition of anonymity for fear of reprisals. Abu Shabab's media office said he was summoned by police before the war but wasn't officially accused or tried. It also said claims the group was involved in attacking aid trucks were 'exaggerated,' saying its fighters 'took the minimum amount of food and water necessary.' The head of the association in Gaza that provides trucks and drivers for aid groups said their members' vehicles have been attacked many times by Abu Shabab's fighters. Nahed Sheheiber said the group has been active in Israeli-controlled eastern parts of Rafah and Khan Younis, targeting trucks as they enter Gaza from the Kerem Shalom crossing with Israel. Troops nearby 'did nothing' to stop attacks, he said. Sheheiber said that when Hamas policemen have tried to confront gangs or guard truck convoys, they were attacked by Israeli troops. One driver, Issam Abu Awda, told the AP he was attacked by Abu Shabab fighters last July. The fighters stopped his truck, blindfolded and handcuffed him and his assistant, then loaded the supplies off the vehicle, he said. Abu Awda said nearby Israeli troops didn't intervene. These kinds of attacks are still happening and highlight 'a disturbing pattern,' according to Jonathan Whittall, from the U.N. humanitarian coordinator, OCHA. 'Those who have blocked and violently ransacked aid trucks seem to have been protected' by Israeli forces, said Whittall, head of OCHA's office for the occupied Palestinian territories. And, he added, they have now become the 'protectors of the goods being distributed through Israel's new militarized hubs,' referring to the GHF-run sites. The Israeli military did not reply when asked for comment on allegations it has allowed armed groups to loot trucks. But the Israeli prime minister's office called the accusations 'fake news,' saying, 'Israel didn't allow looters to operate in Israeli controlled areas.' Israel often accuses Hamas of stealing from trucks. What does all this have to do with aid? Muhammad Shehada, a political analyst from Gaza who is a visiting fellow at the European Council on Foreign Relations, said he doesn't believe Israel's support for armed groups is aimed at directly fighting Hamas. So far there has been no attempt to deploy the groups against the militants. Instead, he said, Israel is using the gangs and the looting to present GHF 'as the only alternative to provide food to Palestinians,' since its supplies get in while the U.N.'s don't. Israel wants the GHF to replace the U.N.-led aid system because it claims Hamas has been siphoning off large amounts of supplies. The U.N. denies that significant amounts have been taken by Hamas. Israel has also said it aims to move all Palestinians in Gaza to a 'sterile zone' in the south, around the food hubs, while it fights Hamas elsewhere. The U.N. and aid groups have rejected that as using food as a tool for forced displacement. The Abu Shabab group has issued videos online urging Palestinians to move to tent camps in Rafah. Israel barred all food and other supplies from entering Gaza for 2 ½ months , pending the start of GHF – a blockade that has brought the population to the brink of famine. GHF started distributing food boxes on May 26 at three hubs guarded by private contractors inside Israeli military zones. Israel has let in some trucks of aid for the U.N. to distribute. But the U.N. says it has been able to get little of it into the hands of Palestinians because of Israeli military restrictions, including requiring its trucks to use roads where looters are known to operate. 'It's Israel's way of telling the U.N., if you want to try to bring aid into Gaza, good luck with this," said Shehada. "We will force you to go through a road where everything you brought will be looted.' Magdy and Keath reported from Cairo
Hamilton Spectator
16 minutes ago
- Hamilton Spectator
Israel backs an anti-Hamas armed group known for looting aid in Gaza. Here's what we know
JERUSALEM (AP) — Israel is supporting armed groups of Palestinians in Gaza in what it says is a move to counter Hamas. But officials from the U.N. and aid organizations say the military is allowing them to loot food and other supplies from their trucks. One self-styled militia, which calls itself the Popular Forces, led by Yasser Abu Shabab, says it is guarding newly created, Israeli-backed food distribution centers in southern Gaza. Aid workers say it has a long history of looting U.N. trucks. Gaza's armed groups have ties to powerful clans or extended families and often operate as criminal gangs. Aid workers allege Israel's backing of the groups is part of a wider effort to control all aid operations in the strip. Israel denies allowing looters to operate in areas it controls. Here's what we know about anti-Hamas armed groups in Gaza: Who are these groups? Prime Minister Benjamin Netanyahu said in a social media video Thursday that Israel had 'activated' clans in Gaza to oppose Hamas. He didn't elaborate how Israel is supporting them or what role Israel wants them to play. Netanyahu's comments were in response to a political opponent accusing him of arming 'crime families' in Gaza. Clans, tribes and extended families have strong influence in Gaza, where their leaders often help mediate disputes. Some have long been armed to protect their group's interests, and some have morphed into gangs involved in smuggling drugs or running protection rackets. After seizing power in 2007, Hamas clamped down on Gaza's gangs — sometimes with brute force and sometimes by steering perks their way. But with Hamas' weakening power after 20 months of war with Israel, gangs have regained freedom to act. The leadership of a number of clans — including the clan from which the Abu Shabab group's members hail — have issued statements denouncing looting and cooperation with Israel. A self-proclaimed 'nationalist force' Besides the Abu Shabab group, it is not known how many armed groups Israel is supporting. The Abu Shabab group went public in early May, declaring itself a 'nationalist force.' It said it was protecting aid, including around the food distribution hubs run by the Gaza Humanitarian Foundation , a mainly American private contractor that Israel intends to replace the U.N.-led aid network. Aid workers and Palestinians who know the group estimate it has several hundred fighters. The Abu Shabab group's media office told The Associated Press it was collaborating with GHF 'to ensure that the food and medicine reaches its beneficiaries.' It said it was not involved in distribution, but that its fighters secured the surroundings of distribution centers run by GHF inside military-controlled zones in the Rafah area. A spokesperson with GHF said it had 'no collaboration' with Abu Shabab. 'We do have local Palestinian workers we are very proud of, but none is armed, and they do not belong to Abu Shabab's organization,' the spokesperson said, speaking on condition of anonymity in accordance with the group's rules. Before the war, Yasser Abu Shabab was involved in smuggling cigarettes and drugs from Egypt and Israel into Gaza through crossings and tunnels, according to two members of his extended family, one of whom was once part of his group. Hamas arrested Abu Shabab but freed him from prison along with most other inmates when the war began in October 2023, they said, speaking on condition of anonymity for fear of reprisals. Abu Shabab's media office said he was summoned by police before the war but wasn't officially accused or tried. It also said claims the group was involved in attacking aid trucks were 'exaggerated,' saying its fighters 'took the minimum amount of food and water necessary.' Aid workers say it is notorious for looting The head of the association in Gaza that provides trucks and drivers for aid groups said their members' vehicles have been attacked many times by Abu Shabab's fighters. Nahed Sheheiber said the group has been active in Israeli-controlled eastern parts of Rafah and Khan Younis, targeting trucks as they enter Gaza from the Kerem Shalom crossing with Israel. Troops nearby 'did nothing' to stop attacks, he said. Sheheiber said that when Hamas policemen have tried to confront gangs or guard truck convoys, they were attacked by Israeli troops. One driver, Issam Abu Awda, told the AP he was attacked by Abu Shabab fighters last July. The fighters stopped his truck, blindfolded and handcuffed him and his assistant, then loaded the supplies off the vehicle, he said. Abu Awda said nearby Israeli troops didn't intervene. These kinds of attacks are still happening and highlight 'a disturbing pattern,' according to Jonathan Whittall, from the U.N. humanitarian coordinator, OCHA. 'Those who have blocked and violently ransacked aid trucks seem to have been protected' by Israeli forces, said Whittall, head of OCHA's office for the occupied Palestinian territories. And, he added, they have now become the 'protectors of the goods being distributed through Israel's new militarized hubs,' referring to the GHF-run sites. The Israeli military did not reply when asked for comment on allegations it has allowed armed groups to loot trucks. But the Israeli prime minister's office called the accusations 'fake news,' saying, 'Israel didn't allow looters to operate in Israeli controlled areas.' Israel often accuses Hamas of stealing from trucks. What does all this have to do with aid? Muhammad Shehada, a political analyst from Gaza who is a visiting fellow at the European Council on Foreign Relations, said he doesn't believe Israel's support for armed groups is aimed at directly fighting Hamas. So far there has been no attempt to deploy the groups against the militants. Instead, he said, Israel is using the gangs and the looting to present GHF 'as the only alternative to provide food to Palestinians,' since its supplies get in while the U.N.'s don't. Israel wants the GHF to replace the U.N.-led aid system because it claims Hamas has been siphoning off large amounts of supplies. The U.N. denies that significant amounts have been taken by Hamas. Israel has also said it aims to move all Palestinians in Gaza to a 'sterile zone' in the south, around the food hubs, while it fights Hamas elsewhere. The U.N. and aid groups have rejected that as using food as a tool for forced displacement. The Abu Shabab group has issued videos online urging Palestinians to move to tent camps in Rafah. Israel barred all food and other supplies from entering Gaza for 2 1/2 months , pending the start of GHF – a blockade that has brought the population to the brink of famine. GHF started distributing food boxes on May 26 at three hubs guarded by private contractors inside Israeli military zones. Israel has let in some trucks of aid for the U.N. to distribute. But the U.N. says it has been able to get little of it into the hands of Palestinians because of Israeli military restrictions, including requiring its trucks to use roads where looters are known to operate. 'It's Israel's way of telling the U.N., if you want to try to bring aid into Gaza, good luck with this,' said Shehada. 'We will force you to go through a road where everything you brought will be looted.' ___ Magdy and Keath reported from Cairo Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Yahoo
24 minutes ago
- Yahoo
Robert Kiyosaki Warns Hyperinflation Will ‘Wipe Out' Millions
Personal finance author Robert Kiyosaki recently made a bold prediction on X about the state of the American economy. The summary of the prediction is that hyperinflation will be financially devastating to millions of Americans. Another GOBankingRates article discusses hyperinflation, stating that the situation occurs when there's a monthly inflation rate of 50% or more. However, due to the role of the Fed, the American economy has never faced such a situation, even when inflation reached as high as 23% in 1920. Trending Now: For You: Below, we examine Kiyosaki's serious claims and determine their accuracy based on expert insights. 'Hyperinflation is a state of extremely high inflation, typically reaching high double digits or triple digits,' said Marko Bjegovic, macroeconomist and founder of Arkomina Research. Kiyosaki believes everything in the economy will become more expensive, from interest rates for borrowing money to basic necessities. Kiyosaki's reasoning is likely that, with the Fed printing money, in his opinion, this could devalue the American currency and lead to higher inflation. It's safe to say that Kiyosaki believes that inflation will become so exorbitant that the average American consumer will be unable to carry their debt moving forward and will have to declare bankruptcy. Read Next: According to MoneyWise, Kiyosaki isn't a stranger to making bold claims about a possible economic collapse. We reviewed some of these claims in the statement to try to verify their accuracy. Bjegovic said there's nothing to suggest that the U.S. is currently on a path to hyperinflation. 'In that sense, the U.S. has never had hyperinflation since the Fed's inception in 1913,' he added. 'Hyperinflation has been commonly associated with countries experiencing extreme political or economic collapse, such as Weimar Germany (1920s), Zimbabwe (2000s), Venezuela (2010s), and Argentina (2020s).' Since the situation has never occurred in history, it's challenging to expect it to happen this time around. On a similar note, it's worth noting that the current Consumer Price Index (CPI) stood at 2.3% in April, the lowest level since February 2021. While inflation peaked — as reported by CNBC — at 9.1% in June 2022, it never approached the 50% figure required for a hyperinflationary state. With inflation cooling down, it doesn't appear that it will reach double digits anytime soon. Some of Kiyosaki's predictions for future asset prices are extremely bold. For context, the highest price of gold ever peaked at $3,500.05 per ounce on April 22, 2025, according to Investing News Network. Blake Mclaughlin, gold expert and vice president of exploration at Axcap Ventures, said gold's recent surge indicates underlying instability in the economy and that based on current conditions, its upward trend may continue. 'Having exposure to commodities like precious metals is a reasonable hedge for inflation. Generally, physical assets, where supplies cannot be readily or easily manipulated, provide a safe and honest place to invest,' he added. However, no evidence would suggest that gold can reach the value mentioned by Kiyosaki According to Yahoo Finance, iBitcoin hasn't passed $112,000 as of May 30 and silver is hovering around $33. These numbers are far from the substantial numbers shared by Kiyosaki. For bitcoin to go from $110,000 to one million is an extreme stretch and there's no evidence pointing towards this possibility. Upon further investigation, there aren't any other credible experts declaring that bitcoin can go as high as one million. Research shared on Business Insider showed there's only one crypto options trade that has bitcoin hitting $300,000 by the end of June and there's only one platform predicting that the digital asset will hit $200,000 by the end of the year. 'The auction Mr. Kiyosaki mentioned was held by the Treasury and not by the Fed,' Bjegovic said. It's essential to emphasize that the Fed didn't conduct this auction, as that's a crucial fact stated in the announcement. Reuters pointed out that the auction was poorly received, which led to a stock sell-off, with investors concerned about the national debt. However, the article also shared that the 20-year bonds usually see less demand than other maturities and that it wasn't a disaster. While the demand for the $16 billion sale of 20-year bonds was weak, it's also unfair to say that nobody showed up to the auction on May 21. Bjegovic said it went better than feared due to the circumstances at the time (Moody's downgrade, passage of the 'Big Beautiful Bill Act' and wider fiscal deficits). 'Treasury auctions are functioning well (as evidenced by other auctions that followed, like the two-year note this week) and inflation remains relatively low. The contents of Mr. Kiyosaki's post on X have grossly exaggerated both the current situation and what is likely to happen in the future,' Bjegovic explained. While it's important to be cautious about your investing approach, you also don't want to get caught up in the fear-mongering that can be evident on social media. As always, we recommend that you speak with a qualified financial professional before making any important decisions about your funds. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard These Cars May Seem Expensive, but They Rarely Need Repairs Warren Buffett: 10 Things Poor People Waste Money On This article originally appeared on Robert Kiyosaki Warns Hyperinflation Will 'Wipe Out' Millions Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
