With fewer than 30 days remaining in the 89th Texas Legislative Session, State Sen. Bob Hall (R-Edgewood) has introduced a sweeping new bill that seeks to dismantle the Texas Lottery Commission (TLC), citing ongoing concerns over mismanagement, lack of oversight, and potential criminal activity within the agency.
Filed late Monday afternoon, Senate Bill 3017 proposes to abolish the Texas Lottery Commission entirely and transfer its functions to the Texas Department of Licensing and Regulation (TDLR). Hall's proposal calls for a limited-scope sunset review of the state lottery, with a built-in provision to terminate the lottery itself by August 31, 2027, if the review fails to justify its continuation.
Accusations of Misconduct
During Tuesday’s Senate Committee on State Affairs hearing, Hall accused the TLC of altering its internal processes in ways that allowed criminal exploitation of the system. “The lottery commission changed its administrative roles to help criminals rig the lottery,” Hall said during the bill’s layout.
Though Hall did not provide specific evidence during the hearing, his remarks follow a series of recent controversies involving the commission, including the resignation of the TLC's acting director just a week prior, amid a tense Senate hearing over agency accountability. Investigations and lawsuits tied to multiple jackpot winners — including one $95 million payout allegedly involving an international ticket-buying syndicate — have further fueled scrutiny of the agency.
Key Provisions of the Bill
SB 3017 includes a range of regulatory reforms and restrictions, aimed at tightening control over lottery operations:
100-Ticket Sales Cap: Retailers would be restricted to selling no more than 100 tickets per customer.
Ban on Internet Sales: All internet ticket sales, including those through mobile apps and websites, would be prohibited.
In-Person Transactions Only: A proposed amendment would require that all ticket purchases and redemptions occur in person, by an actual individual at a licensed retailer.
Vendor Contract Oversight: The bill stipulates that TDLR must prevent any extension of the current vendor contract and issue a new Request for Proposal (RFP) beginning September 1, 2025.
Advisory Committee and Penalties: An advisory committee would be formed to monitor operations, and criminal penalties would be introduced for violations.
Industry Backlash and Lobbyist Influence
SB 3017 is likely to face stiff resistance from powerful players in the lottery industry and their lobbyists. IGT Global Solutions, the current primary contractor for the Texas Lottery, is in the middle of a $177.4 million-per-year contract with the commission. IGT also holds a 10-year agreement for scratch ticket printing services. Additional scratch ticket vendors include Pollard Banknote and Scientific Games LLC.
Both IGT and Scientific Games are represented in Austin by high-profile lobbyists with deep political connections. IGT’s lobbyists include John Scott, a former Texas secretary of state and acting attorney general, and Luis Saenz, a former chief of staff to Gov. Greg Abbott. Scientific Games is represented by prominent consultants such as Allen Blakemore, who is closely aligned with Lt. Gov. Dan Patrick.
Focus on Lottery Couriers
Sen. Hall has also led efforts to regulate lottery courier services — third-party apps that allow users to purchase official lottery tickets online. These services have come under increased scrutiny from lawmakers, though the Coalition of Texas Lottery Couriers maintains they were not involved in the 2023 bulk ticket-buying incident that led to the $95 million jackpot.
Nonetheless, the TLC recently banned online ticket sales via couriers, a move that came just days after its acting director stepped down. Critics of the courier ban argue that such services increase transparency and convenience, while supporters like Hall view them as a potential loophole for fraud.
What’s Next?
SB 3017 still has a long road ahead, needing committee approval and floor votes in both chambers of the Legislature before the session ends. But Hall's push reflects a broader appetite within some corners of the Capitol to reconsider the role and operation of the state lottery — or whether it should exist at all.
"This isn't just about reforming an agency," Hall said. "It's about restoring trust in government oversight and protecting Texans from exploitation and corruption disguised as entertainment."
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