Texas Lottery Faces Shutdown Amid Scrutiny Over Digital Ticket Sales

The Texas Lottery, which generates substantial income for public education and veterans’ programs, might cease to exist as state lawmakers near a key deadline without agreement on its future. If legislators do not act to reauthorize the Texas Lottery Commission by August 31, the agency will shut down, putting billions in yearly funding at risk.

Texas Lottery Faces Growing Scrutiny as Investigations and Debate Over Digital Sales Heat Up

The lottery’s future is tied up in a bigger political fight sparked by claims of poor management and the growing debate about digital lottery couriers. Some people say the commission lets illegal practices happen by allowing third-party services to sell tickets online, which they argue goes against Texas law that bans sales by phone or internet.

Two big jackpot wins are at the center of this argument, worth $95 million and $83.5 million. These wins have led to Texas Rangers and state attorney general investigations. These cases involved huge ticket purchases through couriers, raising questions about how clear and fair the lottery system is.

Senator Bob Hall, who opposes the lottery, put forward a bill to get rid of the agency completely. He pointed to what he called widespread wrongdoing and overstepping of regulatory bounds. While he recognized the financial issues this would cause, Hall said that doing the right thing in government is the most important, even if that means finding a way to fill a $2 billion hole in the state’s school budget.

Right now, the lottery gives about 24% of the $8 billion it makes each year to Texas public schools. Even though this money takes the place of other funding instead of adding to it, people who fight for schools say that getting rid of the lottery could mean cutting back on planned budget increases. This would happen unless lawmakers find other ways to get the money.

Lawmakers Push for Overhaul or Shutdown in Key Legislative Battle

The agency is now going through its 12-year Sunset Review, a process where lawmakers check if state bodies should keep running. If neither House Bill 1505 nor Senate Bill 2402 passes — these bills are needed to keep the commission going — the lottery will shut down on its own, reported The Texas Tribune.

At the same time, lawmakers are split over the courier issue. One bill on the table aims to ban courier services and make selling tickets online a crime. Another plan tries to make the industry legal and controlled, asking for licenses, background checks, and yearly audits.

Lt. Gov. Dan Patrick has drawn a line in the sand, declaring the lottery should end unless it undergoes a complete overhaul and wins back public confidence. Gov. Greg Abbott, while not taking a clear stand on whether the lottery should continue, has stressed the need to follow the law and has ordered state police to look into possible wrongdoing.

The clock is running out on a state program that has poured over $34 billion into education since it began. With the session ending in less than a month and several bills still stuck in committee, time is of the essence.