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Texas Lottery Continuation Approved: Legislation Ensures Four-Year Extension for the Texas Lottery

Texas Lottery operations preserved from halt as legislation passes, granting a four-year extension despite ongoing scandal and courier turmoil.

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Texas Lottery will persist for another four years following the House's rejection of a bill last...
Texas Lottery will persist for another four years following the House's rejection of a bill last week that aimed to eradicate it completely as of September 1. (Texas Newsroom, paraphrased)

Texas Lottery Continuation Approved: Legislation Ensures Four-Year Extension for the Texas Lottery

The State Lottery Gets a Stay of Execution

Posted on: June 1, 2025, 05:15h.

Last updated on: June 1, 2025, 05:15h.

A R coding error @casinoorgphilcRead MoreGaming BusinessRegulationTribal Gaming It looks like Texas lawmakers have given the state lottery a last-minute reprieve.* Texas Lottery Commission is going, going... gone.* New regulatory agency to take charge.*

The state lottery has been granted a temporary reprieve as the legislature passes Senate Bill 3070, a bill that could end the lottery in four years' time. The bill now awaits Gov. Greg Abbott's signature.

On May 30, the Texas Senate agreed to House amendments to SB 3070. If signed, the bill will do away with the embattled Texas Lottery Commission, which has faced criticism for its handling of the state lottery.

Instead, the lottery will be overseen by the Texas Commission on Licensing and Regulations for the next four years. After that period, the Texas Sunset Advisory Commission, a legislative body that identifies waste and inefficiency in state organizations, will decide the lottery's fate.

Tougher Rules

The bill, initially passed by the Senate on May 15, was approved by the House on May 25. During the same session, lawmakers rejected a competing bill that aimed to abolish the lottery on September 1.

One of the House amendments extended the period of grace for the lottery to four years. The bill also introduces tougher rules to prevent bulk purchases and online gambling.

Scandals and Controversies

The Texas Lottery Commission has faced intense scrutiny over a controversial $95 million jackpot win, raising concerns about the commission's ability to ensure fairness. In April 2023, a mysterious European syndicate claimed the jackpot after utilizing lottery couriers to process a significant number of tickets.

Despite Texas law prohibiting online gambling and the sale of lottery tickets by phone, lottery couriers fall into a legal loophole, arguing they don't operate gambling, but merely deliver tickets.

Senate Bill 3070 targets courier services by banning them from operating in Texas and setting a limit of 100 tickets per transaction. Tickets must be purchased in person at licensed locations during normal business hours.

Groundhog Day

The scandals surrounding the syndicate's bulk-buying tactics came at a time when the lottery was up for its routine sunset review, requiring legislation to extend its existence. Despite the furor, bills aiming to abolish the lottery are not uncommon in Texas.

Since its inception in 1992, efforts to reform or eliminate the lottery have been frequent due to concerns over morality, addiction, and its impact on lower-income communities. The lottery contributes approximately $2 billion annually to the state treasury, primarily funding public education.

Enrichment Data:

Current Status of Senate Bill 3070

Senate Bill 3070, introduced by Sen. Bob Hall, has been passed by both the Texas Senate and House. The bill now awaits Governor Greg Abbott's signature to become law. It was sent to the Governor on June 2, 2025.[3][5]

1. Abolishment of the Texas Lottery Commission

  • Senate Bill 3070 abolishes the Texas Lottery Commission and transfers the administration of the state lottery and charitable bingo to the Texas Department of Licensing and Regulation (TDLR)[1][3][5].

2. Restrictions on Lottery Ticket Purchases

  • The bill introduces new criminal offenses for purchasing lottery tickets online or in bulk. Specifically:
  • It prohibits playing lottery games by telephone or through internet applications, making such actions a Class A misdemeanor[5].
  • A person is barred from selling more than 100 lottery tickets to an individual in a single transaction, with violations considered a Class B misdemeanor[5].

3. Sunset Review

  • The TDLR will undergo a sunset review in 2029 to evaluate the viability and potential continuation of the lottery under its new administration[5].

4. Controversial Jackpot Win and Fraud Allegations

  • The Texas Lottery has faced scrutiny over fraud allegations related to multi-million dollar jackpots, which has contributed to the push for reform[5].

5. Courier Services

  • Although the search results do not specifically address the ban on courier services in Senate Bill 3070, a related bill, Senate Bill 28, aims to prohibit couriers but remains pending in committee[1]. Senate Bill 3070 does not directly address courier services, focusing instead on the abolishment of the Texas Lottery Commission and restrictions on ticket purchases[1][5].
  1. The Texas Lottery Commission has been temporarily saved from abolishment by the passing of Senate Bill 3070, which aims to end the lottery in four years.
  2. The newly created Texas Commission on Licensing and Regulations will take over the administration of the state lottery for the next four years.
  3. Senate Bill 3070 also introduces stricter rules to prevent online gambling and bulk purchases in the state lotteries.
  4. Lottery courier services are under threat, as Senate Bill 28, a related bill, aims to ban them in Texas, although it remains pending in committee.

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