The Texas Lottery, a mainstay of state revenue and controversy alike, will live on — but under stricter rules and new leadership.
Late Sunday night, Gov. Greg Abbott signed into law Senate Bill 3070, ensuring the lottery’s survival until at least 2029 while dismantling the agency that has overseen it for three decades. The new law places the Texas Lottery under the oversight of the Texas Department of Licensing and Regulation (TDLR), marking the biggest shakeup to the game’s structure since its creation in 1992.
The move follows months of intense legislative scrutiny and debate that nearly led to the complete shutdown of the lottery, amid growing concerns over its integrity and operations.
From Controversy to Reform
Two major controversies spurred the Legislature to act. First, a group’s purchase of 99% of all 25.8 million possible Lotto Texas ticket combinations led to a $95 million jackpot win that raised alarm about fairness and manipulation. Second, the emergence of online lottery couriers — mobile apps that buy and scan physical tickets for users — prompted legal and ethical questions.
Couriers like Jackpocket have been operating in a legal gray area, exploiting vague language in existing laws that ban ticket sales “by telephone.” Although the Lottery Commission had allowed these services to operate for years, it abruptly reversed its position during the session, pushing lawmakers to clarify the law.
Sen. Bob Hall, R-Edgewood, a longtime critic of state-run gambling, authored the bill with support from Lt. Gov. Dan Patrick, framing it as a compromise measure after efforts to abolish the lottery altogether lost steam.
What the New Law Does
Senate Bill 3070 immediately:
Extends the lottery’s authorization to 2029
Abolishes the Texas Lottery Commission, effective Sept. 1
Prohibits online and app-based ticket sales
Transfers control to TDLR, a regulatory agency not traditionally associated with gaming
Limits players to purchasing up to 100 tickets per retailer visit
Makes selling lottery tickets online a Class A misdemeanor (up to one year in jail)
The change is designed to eliminate vulnerabilities in the system, particularly mass purchases through online platforms that lawmakers say undermine public confidence.
“We didn’t have the luxury to scrap it entirely this session,” Hall said. “But this was the next best thing. We now have tighter controls, and we’re restoring integrity to the process.”
Financial Reality Keeps Lottery Alive
Despite vocal opposition, many lawmakers conceded that abolishing the lottery outright wasn’t financially feasible.
The game generates roughly $2 billion annually, most of which goes to Texas public education. Eliminating it without a replacement revenue source would have left a gaping hole in the state budget.
“We’re deep into the budget already,” Hall admitted. “There was no realistic way to end it without putting critical funding at risk.”
Leadership Changes and Legal Trouble
The overhaul comes amid a leadership vacuum and ongoing investigations. The Lottery Commission’s executive director Ryan Mindell resigned in April, following the departures of two commissioners earlier in the year.
Meanwhile, the Texas Rangers — the state’s top law enforcement division — are investigating the $95 million jackpot win and courier activity across Texas.
Adding fuel to the fire is the case of Kristen Moriarty, a Houston-area woman who won an $83.5 million jackpot through Jackpocket in February but has yet to be paid. The Commission cited the Rangers’ investigation as the reason for the delay, but Moriarty says she’s received no communication from state investigators.
“What started as a dream has become a nightmare,” she told reporters. “Nobody will give me answers.”
The Department of Public Safety declined to comment, citing an open investigation.
Uncertain Future Beyond 2029
With the Texas Lottery Commission now dissolved and the TDLR taking over, questions remain about how the agency will adapt to its new role. A TDLR spokesperson called discussions about the new oversight structure “premature,” though a transition team is already in place.
SB 3070 requires a Sunset Review in 2029, at which point lawmakers will again debate whether to continue the lottery or let it expire.
For now, the game continues — but under stricter rules, tighter scrutiny, and a new operator whose primary experience involves barbers, electricians, and auctioneers.
As Hall put it: “This is still a government-run gambling operation. The long-term goal should be to get the government out of that business altogether.”
What Texans Need to Know:
Lottery tickets can still be bought in person only
No more apps or websites for ticket purchases
You can buy up to 100 tickets per store visit
Online ticket sellers like Jackpocket are now illegal
The lottery will continue through 2029, pending review
