Texas Lottery Commission Disbanded as State Enacts Major Overhaul

In a significant shakeup for the state’s gambling industry, Texas Governor Greg Abbott has signed Senate Bill 3070 into law, effectively dissolving the Texas Lottery Commission and introducing sweeping changes to how the state’s lottery operates.

New Law Extends Texas Lottery to 2029, Ends Commission Amid Integrity Concerns

The legislation, which took effect immediately after its signing on Sunday, extends the Texas Lottery’s operations until 2029 but transfers oversight from the long-standing commission to the Texas Department of Licensing and Regulation (TDLR), reported The Texas Tribune. The law also institutes strict limitations on ticket purchases and criminalizes digital sales conducted through courier apps.

The measure comes in response to mounting criticism over the integrity of the lottery system. Controversy erupted earlier this year when a group managed to win a $95 million jackpot by buying nearly all of the 25.8 million possible combinations, raising concerns over bulk purchasing. At the same time, lottery couriers, third-party services that acquire physical tickets and send customers digital copies, came under fire for exploiting legal gray areas surrounding online gambling laws.

Senator Bob Hall, the bill’s author and a vocal critic of state-sponsored gambling, had previously pushed for an outright end to the lottery. However, he acknowledged that eliminating the program altogether would have left a significant hole in the state’s education budget. The lottery generates roughly $2 billion annually for public schools, making a complete shutdown financially unfeasible.

Fast-Tracked Reform Bill Reshapes Texas Lottery Amid Ongoing Investigations

Instead, Hall framed SB 3070 as a compromise that eliminates many of the elements he and others saw as problematic. Under the new law, online ticket sales and courier services are banned outright. Violations could result in Class A misdemeanor charges, carrying penalties of up to a year in jail.

The bill was fast-tracked through the legislature despite being introduced after the regular filing deadline, signaling bipartisan concern about the current system’s vulnerabilities. Lawmakers agreed that greater oversight was needed following years of lax regulation and questionable enforcement from the Lottery Commission.

With the commission now defunct, the TDLR is preparing to assume control. Although the department has not outlined its full strategy, officials have formed a transition team and are collaborating with former lottery staff to ensure a smooth handover.

Meanwhile, investigations into the conduct of past lottery operations are ongoing. The Texas Rangers are currently looking into both the $95 million jackpot and a separate $83.5 million win that remains unpaid, reportedly due to the use of a lottery courier service.

The future of the Texas Lottery will again be up for review in 2029, when the Sunset Advisory Commission evaluates whether to continue or finally end the decades-old program.