Texas House panel advances bill to overhaul lottery oversight, abolish commission

A Texas House committee has approved legislation that would preserve the state’s lottery while dissolving the Texas Lottery Commission, shifting oversight to a new regulatory structure amid ongoing controversy and investigations.

The bill, passed 10-4 by the House State Affairs Committee, would transfer management of the lottery to the Texas Department of Licensing and Regulation and establish a new advisory committee. It now heads to the full House for consideration, with the legislative session set to end on June 2.

The proposed measure aims to resolve mounting concerns about the integrity and oversight of the Texas Lottery, which is currently undergoing a 12-year Sunset review. Without legislative action, the Lottery Commission is set to expire on August 31.

Authored by Sen. Bob Hall, R-Edgewood, and already approved by the Senate, the bill overrides the existing Sunset process by extending the review period and implementing reforms. Among those are new requirements for age verification systems at retail points of sale and a two-year review period for the lottery’s operation.

Supporters say the bill keeps the Texas Lottery intact while eliminating the commission currently in charge of overseeing it.

The legislation follows scrutiny over the use of couriers to facilitate online ticket orders, a practice that lawmakers say enabled violations of Texas laws prohibiting online and telephone ticket sales and potentially allowed minors to participate. The state has since banned couriers from buying tickets.

The lottery has also been marred by high-profile investigations into two multimillion-dollar jackpots. A $95 million jackpot awarded in April 2023 went to an overseas entity that purchased more than 25 million $1 tickets, allegedly gaining access to “nearly every possible number combination,” Governor Greg Abbott said when announcing a probe by the Texas Rangers.

In February, an $83.5 million winning ticket was purchased at an Austin lottery retailer tied to a courier service, prompting further scrutiny.

Lieutenant Governor Dan Patrick requested that investigators expand the scope to include “any and all matters related to the Lottery Commission first allowing lottery couriers into Texas and any and all possible crimes internally or externally arising from the Lottery Commission's actions or failures to act.”

The reforms and investigations reflect growing legislative efforts to restore trust in the lottery system, which draws billions in revenue annually but has come under fire over operational transparency and regulatory enforcement.