Texas Governor Signs Law to Overhaul Texas Lottery

Texas Gov. Greg Abbott signed Senate Bill 3070 into law on June 20, enabling a sweeping overhaul of the state lottery system. The reform follows a series of scandals at the Texas Lottery in recent years.

The new law abolishes the Texas Lottery Commission (TLC) as of Sept. 1. It assigns its responsibilities, including regulating the Texas Lottery and charity bingo games, to the Texas Department of Licensing and Regulation (TDLR). The law also bans all online sales of lottery tickets and courier services, with in-person sales limited to 100 tickets per purchase.

The move comes in response to highly publicized scandals that have shaken public faith in the lottery system. The first was in April 2023, when a team of players effectively guaranteed themselves a win by buying up 99% of all possible combinations of numbers under a $95 million Lotto Texas jackpot.

Another controversy hit this past February, when a $83.5 million jackpot ticket was purchased using the courier app Jackpocket. The ticket remains uncashed due to legal issues over the proper utilization of the courier and regulatory loopholes in Texas law.

Both cases provoked contentious questions and official investigations. Gov. Abbott ordered the Texas Rangers to investigate, saying Texans need to be able to "trust the integrity" of the lottery.

Lottery couriers ostracized

In the face of mounting pressure, the TLC issued the surprise ruling prohibiting lottery couriers, reversing its earlier contention that it lacked the authority to regulate them. The ruling led large-brand courier companies, such as Jackpocket, to suspend their Texas operations.

Meanwhile, commissioners quit during leadership chaos after being criticized by state leaders, including Lt. Gov. Dan Patrick, on both the Republican and Democratic sides. Legislators even discussed, and ultimately vetoed, an amendment to eliminate the lottery, rejecting it by a vote of 71–58.

The new legislation establishes a Lottery Advisory Committee. It delays the state sunset review of the lottery system until 2029 (from 2027), providing lawmakers more time to determine if the lottery should be allowed to continue.

There are also ethical motivations for the reform movement. Several legislators and special interest groups have argued that the lottery is a regressive tax on the poor. Investigations and audits that uncovered questionable financial arrangements and mismanagement in ticketing programs have also fueled public distrust.

The 2026–2027 House budget also illustrates this confidence issue. It cut the TLC's appropriation and funneled revenue into a general fund, showing a trend toward more centralized regulation and control.

So far, the winner of the February jackpot, who has been identified in court papers as "Jane Doe," is suing the state, alleging the TLC has no authority to exclude the prize. In that case, the decision can potentially establish future policy on third-party ticket sales and winners' rights to use online sites.