Texas abolishes Lottery Commission, transfers oversight to Licensing Department

Texas Governor Greg Abbott has signed into law a sweeping measure that will abolish the Texas Lottery Commission and transfer its oversight to another state agency, while also imposing new restrictions on ticket sales and lottery retail operations.

Senate Bill 3070, signed Friday, officially dissolves the Texas Lottery Commission effective Sept. 1, 2025. From that date, all functions of the lottery will shift to the Texas Commission of Licensing and Regulation or the Texas Department of Licensing and Regulation.

As part of the transition, all full-time Lottery Commission employees will move into equivalent roles under the new department, and references to titles such as “Executive Director” will now apply to officials within the Department of Licensing and Regulation.

While the commission will cease to exist, the legislation calls for the creation of a lottery advisory committee to “provide external expertise on the lottery” and offer guidance on industry regulation. The unpaid committee will include representatives from the public, licensed retailers, lottery beneficiaries, and advocacy groups with divergent viewpoints. At least three members must have substantial experience in lottery-related law enforcement, legal matters, or finance.

The new law enforces a statewide ban on lottery couriers and mobile ticket sales, prohibiting players from requesting ticket purchases and barring individuals from accepting such requests or buying tickets on someone else's behalf. Violations are classified as Class A misdemeanors, punishable by up to one year in jail and a fine of up to $4,000.

Effective immediately, players may only purchase tickets in person at brick-and-mortar retailers during regular business hours, with age verification required at the point of sale.

Retailers are now restricted to selling no more than 100 lottery tickets per transaction. Violators face Class B misdemeanor penalties of up to 180 days in jail and fines of up to $2,000. In addition, the department will limit the number of vending machines, lottery terminals, and related ticket equipment at each retailer, capping the total at five units per location based on business volume.

The Sunset Advisory Commission is scheduled to conduct a limited-scope review in 2029 to evaluate whether the licensing department is equipped to manage the lottery’s operations with integrity. The review will assess regulatory tools, program effectiveness, and overall oversight performance.

If the review does not occur, the state lottery program itself will be automatically abolished on Sept. 1, 2029.

The transfer of records, equipment, and contracts from the Texas Lottery Commission to the Department of Licensing and Regulation will take place on Sept. 1, 2025.