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Despite calls to eliminate the Texas Lottery during the 2025 legislative session, a bill to extend the life of the lottery but transfer oversight to a new agency awaits the governor’s signature.
Senate Bill 3070, authored by Republican Senator Bob Hall, abolishes the Texas Lottery Commission (TLC) and moves supervision of the state-run enterprise to the Texas Department of Licensing and Regulation (TDLR).
Beyond moving supervision of the lottery, SB 3070 contains several provisions from other bills offered during the 2025 session, including a ban on online lottery ticket sales, blocking lottery couriers from operating in the state.
The bill also transfers charitable bingo operations to the TDLR. The department will be required to adopt rules to enforce the ban on mobile lottery sales.
Hall’s bill prohibits a person from selling one individual more than 100 lottery tickets in a single transaction.
SB 3070 was also amended to require the Sunset Advisory Commission to review the lottery’s operations under the state Department of Licensing and Regulation before 2029 to determine whether it is the appropriate agency to administer the state lottery.
Hall told his colleagues on Friday on the Senate floor that the sunset review will determine whether the TDLR has sufficient tools to ensure the integrity of lottery games.
The amended bill would abolish the state lottery on September 1, 2029, unless reauthorized by the legislature.
The commission review deadline was originally in 2027, when the Senate initially passed the bill on May 15.
The House passed its amended version on May 26 before the Senate voted 31-0 to concur with the amendments on May 30.
Hall has previously said he views the TLC as being beyond reform, but admitted that there does not seem to be an appetite to get rid of the lottery outright.
On Friday, Hall suggested further legislation could be introduced in future legislative sessions.
“Senate Bill 3070 represents a new chapter in our effort to protect Texans from a vice that takes advantage of the poorest people in our state. But this is not the end of the story,” Hall said.
Prior to the Texas legislature adjourning its 140-day regular session on Monday (June 2), the amended bill was forwarded to Republican Governor Greg Abbott for his signature or veto. The bill received the necessary two-thirds majority and will go into effect immediately should Abbott sign it.
If SB 3070 is vetoed by Abbott, the lottery commission would still be abolished on September 1, with the lottery also shutting down.
Should the lottery be terminated, it would leave a multibillion-dollar hole in the state's $338bn two-year state budget. The Texas Lottery brought in $8.38bn in sales in 2024, sending $2.007bn in revenue to the state to fund public education and veterans’ assistance.
In 2023, the lottery contributed $2.16bn to state coffers. In a fiscal note, the Legislative Budget Board warned that SB 3070 would cost the state $59.35m through the biennium ending August 31, 2027.
The Texas Lottery Commission came under heavy criticism from lawmakers this session for controversial incidents involving lottery couriers.
Lottery couriers attracted attention from Texas policymakers, including Abbott and Lieutenant Governor Dan Patrick, after a Texas resident won an $83.5m lottery prize in early February through a ticket purchase using Jackpocket’s platform. The lottery courier is owned by DraftKings.
That $83.5m win has yet to be paid out, according to media reports. Last month, an anonymous woman in Texas filed a lawsuit in the District Court of Travis County against the lottery commission for withholding the jackpot, claiming it was a valid lottery ticket purchased through Jackpocket.
A $95m Lotto Texas jackpot was also won in April 2023 by a player who made a bulk purchase of tickets that included nearly every possible number combination.
In January, Abbott ordered the Texas Rangers to investigate both incidents for any potential wrongdoing, saying residents must be able to trust the state lottery.
Shortly after Abbott ordered the investigations, the TLC issued a new policy statement to ban couriers from operating in the state. The new policy took effect immediately on February 24, with the commission adopting new regulations in April.
The commission had argued for years that it could not regulate couriers. Lotto.com is currently contesting the rule in court, with The Texas Tribune reporting that the courier service has called the ban an “about-face” from the agency’s previous position.
