16-05-2025
Texas Lottery Gets Major Overhaul
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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.
