Texas Senate votes to abolish Lottery Commission amid ongoing scandals,

In a sweeping move aimed at restoring public trust in the state’s lottery system, the Texas Senate voted unanimously this week to pass Senate Bill 3070, effectively abolishing the Texas Lottery Commission (TLC) and transferring its operations to a different state agency. The bill, authored by Sen. Bob Hall (R-Edgewood), is a direct response to recent revelations of internal misconduct and lack of oversight within the TLC.

Under SB 3070, the Texas Lottery will now fall under the jurisdiction of the Texas Department of Licensing and Regulation (TDLR), an agency already responsible for overseeing a wide array of state-regulated industries. Hall emphasized that the bill is not intended to eliminate the lottery itself, which generates hundreds of millions of dollars annually for public education and veterans’ services, but rather to fix a broken system.

“The problems we’ve had weren’t masterminded by external criminals,” Hall stated during the bill's presentation on the Senate floor. “They came from within the Lottery Commission itself — people abusing their positions, taking money from Texans.”

Key Reforms in SB 3070

The legislation includes multiple structural reforms and accountability measures:

Agency Shift: Lottery operations will be managed by TDLR instead of the TLC.

Sunset Review: A limited-scope audit will be conducted to assess the long-term viability and performance of the Texas Lottery.

Retailer Safeguards: Retail locations will be limited to five lottery machines each, and a 100-ticket purchase cap per transaction will be enforced to curb bulk purchases often linked to fraud.

In-Person Sales Only: Online lottery ticket sales will be prohibited, and in-person purchases must include age verification.

New Oversight Measures:

An annual audit by the State Auditor’s Office.

Inspection rights granted to key state officials.

Mandatory document preservation relating to lottery operations.

A ban on the automatic renewal of existing vendor contracts, forcing a re-evaluation of third-party agreements.

Violations of these provisions will carry criminal penalties, including for state employees who try to buy tickets or manipulate the system.

Legislative Support and Ongoing Investigations

The bill passed with unanimous bipartisan support. Sen. Donna Campbell (R-New Braunfels) sought clarification during debate to ensure that lottery revenue streams — particularly those supporting the Foundation School Fund and Veterans' Assistance Fund — would remain unaffected.

Sen. Valoree Swanson (R-Spring) and Rep. Gary Gates (R-Rosenberg), both of whom have been vocal about the need for reform, expressed satisfaction with the bill’s passage. Gates remarked, “They [the lottery system] have a two-year lease on life. We'll see what happens under the new agency.”

Meanwhile, the Texas Rangers continue to investigate allegations of fraud and misconduct, including the actions of former TLC Executive Director Gary Grief, who is reportedly still missing. “If anyone knows where he is,” Gates added pointedly, “let us know — the Texas Rangers would like to talk to him.”

What Happens Next?

The bill will now move to the Texas House for consideration. If signed into law, the structural transition of lottery oversight will begin in the next fiscal year. The legislation represents a notable pivot in how Texas handles its $8 billion-per-year lottery business, prioritizing transparency and public accountability after months of scandal.