Texas bill to dissolve Lottery Commission heads to Governor's desk

A bill to abolish the Texas Lottery Commission (TLC) cleared the state Legislature and now awaits the signature of Governor Greg Abbott, following months of scrutiny over the agency’s oversight of high-profile lottery jackpots and unregulated courier services.

Senate Bill 3070, introduced by Sen. Bob Hall, would dissolve the TLC by September 1, 2025, and transfer lottery and charitable bingo operations to the Texas Department of Licensing and Regulation (TDLR). The measure passed both chambers with strong support.

The legislation introduces a series of regulatory changes, including a ban on online lottery ticket sales, a cap of 100 tickets per transaction, and the formation of a Lottery Advisory Committee. The bill also mandates a sunset review before 2029 to determine whether the state lottery should continue.

The overhaul follows controversy surrounding two major jackpots. In one case, a group used a bulk purchase strategy to secure a $95 million win in 2023, reportedly printing 99% of all number combinations. Another $83.5 million jackpot in February was won via Jackpocket, a lottery courier app operating outside regulatory oversight.

Governor Abbott ordered an investigation into both jackpots earlier this year, after which the Texas Rangers and Attorney General Ken Paxton launched inquiries. “Texans must be able to trust the state’s lottery system and know that it is conducted with integrity and in accordance with the law,” Abbott said. He noted the 2023 syndicate had purchased “nearly every possible number combination.”

Attorney General Paxton said he was “deeply concerned about the integrity of our state’s lottery system.” The investigations prompted the resignation of a lottery commissioner in February and Executive Director Ryan Mindell in April.

In the wake of the scandal, the TLC voted to ban courier services—despite having previously claimed it lacked authority to regulate them. The bill now formalizes a ban on such services.

The commission also faces a pending lawsuit from the anonymous $83.5 million winner, identified as Jane Doe, who alleges the TLC is illegally withholding her prize. Her complaint argues that the commission cannot apply new rules retroactively after a drawing.

Calls to eliminate the lottery altogether surfaced during debate, but a House amendment to abolish the game was rejected in a 71–58 vote. Critics, including Rep. Nate Schatzline, labeled the lottery a “regressive tax” and questioned the legitimacy of maintaining a “corrupt” agency. “The problem is, as a legislature, if we know an agency is corrupt, shouldn’t we just abolish it?” Schatzline said during the floor debate.

Lt. Gov. Dan Patrick described the sunset review timeline as a “two-year lease on life” for the state lottery.