Texas Lawmakers Vote to Protect Lottery System with New Legislation

The Texas House has approved a bill with a 110-29 vote, transferring the state lottery to the Texas Department of Licensing and Regulation (TDLR). The legislation also shifts oversight of Charitable Bingo, previously managed by the Texas Lottery Commission, to TDLR.

State Rep. Charlie Geren (R-Fort Worth), who authored the House substitute to the original Senate bill, emphasized the importance of maintaining the lottery: "The lottery provides about $2 billion per year for public education and about $27 million per year for veterans."

Scandals Prompt Legislative Action

The bill follows controversies surrounding the Texas Lottery Commission, including an April 2023 jackpot scandal where an overseas entity purchased 25 million $1 tickets, securing a $95 million win. Additionally, an $83.5 million jackpot in February remains under investigation, with the Lottery Commission refusing to pay the sole winner due to ongoing inquiries.

Failed Efforts to Abolish the Lottery

Some lawmakers, including Sen. Bob Hall (R-Edgewood), pushed to end the 33-year-old lottery, but the proposal lacked sufficient votes. Instead, Hall authored a compromise bill, which the Senate passed earlier this month.

An amendment to abolish the lottery failed in the House with a 71-58 vote, with Rep. Brent Money (R-Greenville) arguing that lotteries disproportionately impact low-income Texans.

Key Reforms in the Bill

The legislation introduces several reforms, including:

• Banning third-party couriers from assisting in ticket purchases.
• Mandating age verification tools for retailers to prevent sales to minors.
• Requiring a comprehensive review by state regulators to develop additional recommendations.

Future of the Texas Lottery

The House version of the bill extends the contract of International Game Technology (IGT), the company operating the lottery, for two years. However, state officials are currently procuring a new lottery operations contract, set to begin after the current one expires in 2026.

The Lottery Commission, currently undergoing a 12-year systematic evaluation, will expire on August 31 unless reauthorized by the Legislature. Lawmakers must review and approve the continuation of the lottery by September 1, 2029, while the Senate version calls for a review by September 1, 2027.

Since 1997, the lottery has contributed $34 billion to public schools, including $2 billion in 2024, and $267 million for veterans since 2010. Opponents argue that lottery revenue is a small fraction of the state budget and could be replaced through other funding sources.

Next Steps for the Bill

Concerns over courier-assisted ticket purchases led to a Senate vote (31-0) banning couriers from facilitating ticket sales. Gov. Greg Abbott and Attorney General Ken Paxton have ordered investigations into potential crimes related to multimillion-dollar jackpots.

Upon final approval from both chambers, the bill will be sent to Gov. Greg Abbott for his signature, determining the future of the Texas Lottery.