Governor Greg Abbott officially signed SB 3070, allowing the Texas Lottery to continue until 2029 but also disbanding the Texas Lottery Commission, which operated the Texas Lottery since its inception more than 30 years ago. Senate Bill 3070 also criminalizes lottery courier operations and prohibits ticket sales online, and beginning September 1, the Texas Lottery will be operated by the Texas Department of Licensing and Regulation.

The Texas Lottery Commission, which has overseen the state's lottery system for over three decades, will be dissolved following the passage of a new law that imposes strict limitations on the games. Governor Greg Abbott signed Senate Bill 3070, keeping the Texas Lottery operational through 2029 but placing it under new management and tightening regulations around ticket sales - especially online.

The move comes after a legislative session in which the future of the Texas Lottery became a battleground, drawing scrutiny over recent controversies and the commission's oversight.

Online sales banned, oversight transferred

Under SB 3070, all online and app-based lottery ticket sales, including those conducted by courier services, are now prohibited. Starting September 1, the Texas Department of Licensing and Regulation will assume responsibility for lottery operations. The now-defunct Texas Lottery Commission's functions and remaining staff will be folded into TDLR during the coming months.

A TDLR spokesperson confirmed the formation of a transitioning team and the creation of working groups comprised of staff from both agencies, though the department said it was "premature" to disclose further details.

Controversies spark legislative action

The legislative crackdown follows two major scandals: the controversial win of a $95 million Lotto Texas jackpot by a group that allegedly bought 99% of the 25.8 million ticket combinations, and the rise of lottery courier apps like Jackpocket. These apps allow users to order tickets digitally, which are then printed and scanned by third-party retailers.

Though the Texas Lottery Commission had permitted such operations for years, it abruptly reversed course mid-session, drawing criticism from lawmakers like Senator Bob Hall and Lt. Governor Dan Patrick. Hall, who authored SB 3070, described the bill as "the next best thing" to abolishing the lottery altogether.

The new law makes selling tickets online or through any digital platform a Class A misdemeanor, carrying penalties of up to one year in jail. It also limits in-person ticket purchases to a maximum of 100 per player at licensed retailers.

Lottery's revenue saves it - for now

Despite vocal opposition from Hall and other critics, complete elimination of the lottery failed to gain traction due to its critical role in public education funding. The lottery contributes roughly $2 billion annually to Texas schools, a sum lawmakers were unwilling to forfeit during the current budget cycle.

"It didn't take a lot of in-depth discussion," Hall said. "We're not going to be able to end [the lottery]... We need the income to balance the budget for this next biennium."

Nevertheless, the future of the Texas Lottery remains uncertain. SB 3070 sets a new expiration date of 2029, after which lawmakers will be required to reauthorize it following a Sunset Advisory Commission review.

Leadership exodus and ongoing investigations

The dismantling of the Texas Lottery Commission comes amid a wave of resignations. Executive Director Ryan Mindell stepped down in April, following the earlier departures of two of the five commissioners. Meanwhile, investigations into lottery operations continue.

The Texas Rangers are currently probing the controversial $95 million jackpot as well as the activities of online courier services. Another case involves an $83.5 million win by Kristen Moriarty, a Houston resident who purchased her ticket via Jackpocket. Despite being declared the winner in February, Moriarty has not been paid and has reportedly not been contacted by DPS. "It was excitement and happiness at first, and then it just progressed to stress and anger," she said.

The Texas Lottery Commission has cited the ongoing investigation as the reason for the delay in her payout. DPS has declined to comment, citing policy on active investigations.