Texas legislature moves to abolish Lottery Commission

Legislation to abolish the Texas Lottery Commission (TLC) is one step away from becoming law after the Texas Senate on Friday night accepted House amendments to Senate Bill 3070, forwarding the measure to Gov. Greg Abbott for final approval.

If signed, the bill would dissolve the TLC and transfer responsibility for managing the Texas Lottery and Charitable Bingo operations to the Texas Department of Licensing and Regulation (TDLR). While lottery games would continue, this move marks the most significant structural overhaul of the state's gambling oversight since the lottery was established in 1991.

Background: Scandals and Scrutiny

The decision to dismantle the TLC comes at a time of deep turmoil within the agency. Multiple scandals have plagued the commission over the past year, leading to separate investigations by the Texas Rangers and the Attorney General’s Office. Details of those investigations have not been made fully public, but state lawmakers cited “serious concerns about transparency and accountability” in their push for reform.

State Senator Bob Hall, R-Edgewood, who authored the bill, originally sought to eliminate the lottery altogether. However, the final version of SB 3070 stops short of that. Instead, it shifts control to TDLR and includes provisions for a sunset review in 2029, which will determine whether the state should continue operating the lottery at all.

“This is about making sure Texans can trust that the system is fair and above board,” Hall said during floor debate. “Specifically, sunset will assess whether TDLR has sufficient tools to ensure the integrity of the game.”

What Changes Under SB 3070?

If signed into law, the following changes would take effect:

The Texas Lottery Commission will be officially abolished on Sept. 1, 2025.

Oversight of both the lottery and charitable bingo will be handed to the TDLR, a larger regulatory agency that already oversees dozens of licensed industries in the state.

Mobile lottery applications would be discontinued, reducing the accessibility of lottery play through smartphones.

Lottery prize claims will be tightened. TDLR would require winners to submit IRS forms and verify tax information before issuing any payments.

The newly created lottery division within TDLR will undergo a sunset review in 2029, which could determine whether the Texas Lottery should continue to exist at all.

TDLR, for its part, has not commented publicly on the logistics of the transition, but the TLC issued a statement earlier this month pledging full cooperation.

“The TLC is prepared to fully support the Texas Department of Licensing and Regulation with ensuring that a smooth, seamless and successful transition occurs for both the administration of the lottery and the regulation of charitable bingo,” the commission stated.

What Happens If Abbott Vetoes?

Even if Governor Abbott vetoes the bill, the outcome could be largely the same. The TLC is already scheduled for sunset this year, meaning it would be automatically dissolved on Sept. 1 regardless of whether SB 3070 becomes law. However, without the bill, the Texas Lottery itself would also disappear, taking state-run gambling with it.

SB 3070 essentially provides a lifeline to the lottery, separating it from the troubled commission while laying groundwork for tighter oversight under TDLR.

A Step Toward Elimination?

Sen. Hall has been vocal about his opposition to the lottery for years, calling it a “regressive tax” that disproportionately impacts low-income Texans. On Friday, he suggested that this legislation is part of a longer-term plan to phase out the lottery entirely.

“Senate Bill 3070 represents a new chapter in our efforts to protect Texans from a vice that takes advantage of the poorest people in our state,” Hall said. “But this is not the end of the story.”

What’s Next?

Governor Abbott now has until mid-June to sign or veto the bill. If he takes no action, SB 3070 will become law automatically. In the meantime, both TLC and TDLR are expected to begin informal preparations to ensure a smooth handoff, should the bill be enacted.

Texans can expect more details this summer as the state prepares for a new era in lottery oversight — one marked by questions about transparency, accountability, and the role of state-sponsored gambling in public life.