The Texas Senate has decided to make some sweeping regulatory changes to the Texas Lottery. It would effectively discard the Texas Lottery Commission but it will transfer the control to the Texas Department of Licensing and Regulation as well as make several changes to how the lottery is managed in the state.

In a sweeping move aimed at overhauling the administration of Texas’ lottery system, the Texas Senate unanimously approved legislation that would abolish the Texas Lottery Commission and transfer oversight responsibilities to the Texas Department of Licensing and Regulation. The bill, Senate Bill 3070, sponsored by Senator Bob Hall, passed 31 - 0 late last week.

While the measure retains the existence of the lottery itself for now, it marks a significant shift in governance and opens the door for the possible elimination of lottery gaming in the state within two years. The Texas House has already begun fast-tracking the bill for committee discussion ahead of the legislative session’s end on June 2.

Sweeping changes to how the lottery is operated

Under SB 3070, the TDLR would not only assume administrative control but also implement a series of new restrictions aimed at increasing transparency and accountability. For instance, the bill would criminalize online lottery play, prohibit consumers from purchasing over 100 tickets at once, and ban the use of courier services to buy tickets on behalf of others. Additionally, it would cap the number of ticket-printing terminals available to licensed retailers.

These changes come in response to a high-profile incident in 2023 in which a lottery syndicate won a $95 million jackpot after reportedly spending $25 million to secure 99% of all possible number combinations. The episode triggered widespread media coverage and legislative scrutiny, with many lawmakers pointing to it as a sign that the lottery system was vulnerable to manipulation.

Temporary lifeline: two-year trial before sunset review

Though SB 3070 preserves the lottery for now, its long-term fate remains uncertain. The legislation includes a provision for a limited “sunset review” by August 31, 2027, which could lead to the complete shutdown of the lottery if lawmakers are not satisfied with how the new oversight regime performs.

Lt. Governor Dan Patrick, a vocal proponent of the reform, framed the legislation as a probationary period for the state’s gaming operations. “We’re going to give the extension to the game to the TDLR,” Patrick said in a video statement. “They will oversee it with a brand-new leadership team and new guardrails … We can ban it in two years if the TDLR does not operate it as we instruct them to.”

The potential stakes are high. The Texas Lottery contributes approximately $2 billion annually to the state’s coffers, primarily benefiting education and veterans' services.

Top state officials granted inspection authority

One of the more unusual features of SB 3070 is a provision allowing top Texas officials - including the governor, lieutenant governor, and attorney general - to conduct in-person inspections of licensed lottery retailers.

This clause appears to have been influenced by Lt. Gov. Patrick’s own efforts earlier this year to investigate Winner’s Corner, a retail outlet owned by lottery courier Jackpocket. Patrick had claimed he was denied full access when attempting to scrutinize the store following the sale of an $83.5 million winning ticket.

“Now, I’ll be a lottery inspector, and I can drop in and go anywhere I want to make sure everything is on the up and up,” declared Patrick in a video. He further alleged that his experience with Winner’s Corner led to broader revelations about what he called “alleged corruption” within the Lottery Commission.

Path forward hinges on House and Governor

The Texas House must now act quickly to move the bill forward before the legislative session concludes. If the legislation is not approved and sent to Governor Greg Abbott before June 2, it cannot be taken up again until the legislature reconvenes in 2027.

Sen. Hall’s initial bill, SB 1988, had called for the complete abolition of the lottery but failed to gain traction. SB 3070 represents a compromise that leaves room for reform while keeping the game alive - for now. The coming weeks will determine whether the bill becomes law and whether the Texas Lottery’s future remains a gamble or becomes a more tightly controlled enterprise.