State Lawmakers Push Forward with Major Lottery Reform

Texas is on the verge of a dramatic transformation in how it runs its state lottery. Senate Bill 3070, which ed the Senate unanimously and advanced through the House State Affairs Committee by a 10-4 vote, proposes dismantling the Texas Lottery Commission and transferring oversight to the Texas Department of Licensing and Regulation (TDLR).

The sweeping measure comes amid growing scrutiny of the commission, which is currently under investigation for alleged internal misconduct and regulatory failures. According to the bill’s language, if the restructured lottery fails to meet new standards, it could be permanently shut down by 2027.

Scandals Spark Legislative Action

SB 3070 was introduced by Republican Sen. Bob Hall, who has been vocal about the commission’s failures. “The criminal activities that have taken place came from within the lottery commission itself,” Hall stated. His bill follows a series of high-profile controversies, including a $95 million jackpot win through a mass purchase scheme and an $83.5 million prize claimed via a courier app—both of which raised concerns about fairness and legality.

Gov. Greg Abbott ordered investigations into these incidents in February, and the fallout has been significant. The executive director and a commissioner of the Texas Lottery have since resigned. In late April, the commission formally banned courier services from operating in the state.

Courier Services in the Crosshairs

Though the Texas Lottery Commission has already barred couriers, SB 3070 would make their use illegal under state law. Offenders could face criminal charges. Hall has accused the commission of deliberately avoiding regulation, describing it as “a private-public partnership… to engage in a criminal conspiracy to defraud Texans.”

Courier services, such as Lotto.com, argue they’ve sought regulation and even filed suit against the commission. “Regulated lottery couriers integrity and the operations and continued growth of the Texas Lottery,” said Rob Porter, the company’s chief legal officer.

Key Provisions and Future Outlook

The bill would introduce several operational changes, including a 100-ticket purchase cap per transaction, a limit of five ticket machines per retailer, and a ban on employees and their families from buying tickets. A new advisory committee would help guide the TDLR’s oversight.

Annual audits and new transparency requirements—such as public records of meetings—are also included. A pivotal component of SB 3070 is the mandated Sunset Advisory Commission review in 2027. This limited-scope review will determine whether the Texas Lottery should continue. If lawmakers are not convinced of its value and integrity, the lottery will be officially terminated by September 1, 2027.

The financial implications are considerable. The state’s fiscal note warns of a $52 million revenue loss over two years, largely due to the elimination of courier ticket sales.

The bill is now headed to the full House for consideration. With the legislative session ending June 2, final approval could be imminent.

Source:

“Texas House Committee Advances Bill To Abolish Lottery Commission and Overhaul State Lottery”, texasscorecard.com, May 20, 2025