Texas Senate Approves Lottery Commission Dissolution

The Texas Senate has struck against the state’s Lottery Commission, approving a bill that would put an end to the agency. This comes amid a lengthy scandal involving lottery couriers and integrity concerns.

SB 3070 Passed the Senate by a Landslide

Last week, the Texas Senate voted in favor of offing the Lottery Commission. Senate Bill 3070 seeks to dismantle the agency and transfer its responsibilities to the Texas Department of Licensing and Regulation (TDLR). The bill was passed with an overwhelming 31-0 support, demonstrating lawmakers’ strong discontentment with the commission.

The brainchild of Sen. Bob Hall, SB 3070 seeks to tighten the control of lottery gaming by putting the TDLR in charge of the state’s lottery operations. As the lottery custodian, the TDLR would be responsible for the licensing and regulation of lottery games. Supporters of the measure hope that this would lead to improved transparency and would prevent future scandals.

To that end, the bill will enforce a number of transparency measures and criminal penalties for a number of violations, including offering courier services and allowing bulk purchases.

In addition, SB 3070 will mandate annual audits that would make sure that the proposed new lottery custodian is not making the same mistakes as its predecessor. These audits would be conducted by state officials, including the governor and attorney general.

SB 3070 Heads to the House of Representatives

Despite the overwhelming support by the Senate, SB 3070’s future has not yet been set in stone. The bill will now be sent to the Texas House of Representatives for further deliberation.

If passed and signed into law, the measure would start transferring the Texas Lottery Commission’s duties to the TDLR starting in 2026.

Lottery Couriers Under Fire

The pushback against the Lottery Commission stems from a 2023 scandal in which an international consortium leveraged lottery couriers to buy out the tickets for a huge lottery drawing, effectively securing itself a $95 million jackpot.

Since then, lawmakers have sought to end lottery couriers. These efforts finally yielded results earlier this year, culminating with a ban on such services.

For reference, lottery couriers are services that buy lottery tickets on behalf of customers, effectively allowing them to buy tickets online. Some have argued that this violates state online gaming laws and undermines the integrity of the lottery.