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A state senator who wanted to eliminate the Texas Lottery has now introduced a bill to move oversight of the lottery’s operations to a new state agency to maintain the billions in funding lottery sales provide to education and veterans affairs.
Senate Bill (SB) 3070, filed by Republican Senator Bob Hall, would abolish the Texas Lottery Commission (TLC) and move supervision of the state-run business to the Texas Department of Licensing and Regulation (TDLR).
“Everyone should already understand the lottery commission’s long list of wrongful and illegal acts,” Hall said. “The lottery commission changed its administrative role to help criminals rig the lottery. Most of these changes were made in direct contradiction to existing law.”
Hall’s omnibus lottery bill also incorporates the provisions of Senate Bill 28, a measure that would implement a total ban on lottery couriers, as well as other proposals being considered in both chambers to create new criminal penalties for online ticket purchases and the mass sale of lottery tickets.
SB 28 was unanimously passed by the Senate in February, following an abrupt decision by the TLC that lottery courier operations were not permissible under current law.
Hall also proposes a limited-scope sunset review of the state lottery to evaluate and make recommendations on the continuation of the Texas Lottery. Unless the review supports the continuation of the lottery, it will be abolished by August 31, 2027.
SB 3070 would limit the number of lottery tickets sold to no more than 100 in a single transaction and dissolve the Texas Lottery Commission by December 1, 2025, although all lottery rules and licenses would remain in effect until TDLR can replace them. Lottery terminals would also be limited to five per licensed retailer.
Some of the restrictions in SB 3070 are similar to those in Senate Bills 1346 and 2153. Republican Representative Jared Patterson presented SB 1346 on Tuesday (May 13) during a House Committee on Licensing and Administrative Procedures meeting, but it was left pending in the committee.
The measure, which passed the Senate on April 10, prohibits sales to people attempting to purchase all or substantially all possible winning tickets in a lottery drawing. SB 2153 was referred to the Senate Committee on State Affairs on March 24, where it remains without a hearing scheduled on the proposal.
Hall made it clear that he views TLC as being beyond reform, and its duties should be transferred to another state agency that has demonstrated operational efficiency and integrity.
But he praised the operation of the Texas Lottery for being good at raising funds for schools and veterans.
“So if there isn’t an appetite to get rid of the lottery outright, then this bill represents the next best thing,” Hall said during the Senate Committee on State Affairs hearing on the bill shortly after it was filed on Monday.
Senator Bryan Hughes, a Republican and chair of the committee, supported Hall’s efforts, describing SB 3070 as being “in real good shape”, but the measure was left pending in committee at the end of the hearing.
During the committee hearing, Hall said he would add several amendments to his bill once it reaches the Senate floor that would increase criminal penalties, require individuals to cash in winning tickets, and require tickets to be bought only at licensed retail locations.
The lottery commission is currently under review by the Texas Sunset Commission, which all state agencies undergo every 12 years, and requires legislation to continue its operations. Texas' biennial legislative session is scheduled to adjourn on June 2.
The Texas Lottery Commission has come under heavy criticism from lawmakers this session for controversial incidents involving lottery couriers. The state lottery brought in more than $8bn in sales in 2024, the fourth highest in the nation.
Lottery couriers attracted attention from Texas policymakers, including Governor Greg 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.
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. Abbott ordered the Texas Rangers to investigate both incidents for any potential wrongdoing.
During his testimony Monday, Hall accused the lottery commission of lying to the legislature at an earlier hearing by saying they could not regulate lottery couriers, only to then announce in February that they could regulate lottery couriers “once it became politically expedient”.
“If there is a choice between financial gain of $2bn in annual revenues and preserving the integrity of the state, there is no argument,” Hall wrote in a statement included with a Senate Research Center analysis of SB 3070.
