Governor Signs Bill Abolishing Texas Lottery Commission
Now it is official: after months of speculation and legislative deliberation on the Texas Lottery's future, the Texas Lottery Commission is finally scheduled to be abolished this fall, while its responsibilities will be taken over by another state entity.
LISTEN TO THIS ARTICLE:On Friday, June 20, Texas Governor Greg Abbott signed SB 3070 into law, abolishing the Texas Lottery Commission and transferring its oversight to another state department. The bill also imposes new limits on retailers and ticket purchases.
Proposed by Sen. Bob Hall, the legislation reflects the united stance of Texas State leaders, including executives and legislators, to reform the lottery industry. The bill enjoyed overwhelming support in the Senate, passing in May, and was subsequently fast-tracked in the House to meet the legislative deadline.
With the development, starting from September 1, 2025, all state lottery-related functions and activities currently performed by the Texas Lottery Commission will be assumed by the Texas Commission of Licensing and Regulation or the Texas Department of Licensing and Regulation.
Going forward, the terminology' Lottery Commission' will apply to the Department of Licensing and Regulation. Also, existing TLC employees will transition to equivalent roles within the Department, and titles such as 'Director' or 'Executive Director' will now refer to the Executive Director of the Department of Licensing and Regulation.
Another key provision in the bill is the establishment of a 'lottery advisory committee' to provide external expertise and insights on the lottery industry and inform regulatory decisions and oversight.
The committee's membership will include public representatives, licensed retailers, interest groups with varied viewpoints, and organizations benefiting from lottery proceeds. However, the bill requires that three or more members of the committee have expertise in lottery law enforcement, legal affairs, and finance.
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Stricter Regulations for Retailers and Players
The legislation also prohibits using internet or mobile apps to play lottery games, a move that effectively bans lottery couriers. Players can only buy lottery tickets in person from a physical retailer during business hours, and retailers are required to verify the buyer's age using commission-prescribed methods. Non-compliance with this rule is classified as a Class A misdemeanor and carries a potential penalty of up to one year in jail and a fine of up to $4,000.
Additionally, the bill introduces new limits on ticket purchases and retail equipment. Retailers are prohibited from selling over 100 lottery tickets in a single transaction, and exceeding this limit would constitute a Class B misdemeanor, punishable by up to 180 days in jail and a $2000 fine.
Furthermore, a maximum of five total vending machines, terminals, and ticket printers will be allowed per retailer.
In 2029, the Sunset Advisory Commission will conduct a limited-scope review of the state lottery to assess its future. The review will examine the department's ability to maintain program integrity, assess the transfer's progress, and decide the Lottery's future.
If Sunset Review is not conducted, the Lottery will be abolished on September 1, 2029.
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