Texas Lottery Bill Shifts from Ban to Strict Oversight Overhaul
Texas lawmakers, led by Senator Bob Hall, are reshaping the state lottery with Senate Bill 3070, moving from outright bans to tight regulations and new oversight under the Texas Department of Licensing and Regulation.
A New Game Plan
Texas is rolling out a big change for its state lottery, with Senator Bob Hall’s Senate Bill 3070 (SB 3070) steering clear of a total ban in favor of strict rules and a new home, according to legislative documents.
“It’s the next best thing,” Hall said, after pushing to end the lottery entirely. Unanimously passed by the Texas Senate, SB 3070 awaits House committee approval by May 23, 2025, to transfer lottery operations to the Texas Department of Licensing and Regulation (TDLR) by September 1, 2025.
SB 3070 scraps the Texas Lottery Commission, moving all operations, including charitable bingo, to TDLR, per the filings. The transfer, set for September 1, 2025, includes funds, contracts, and records, giving the lottery “a two-year lease on life.”
A Sunset Advisory Commission review, due by August 31, 2027, will decide if the lottery lives past September 2027. New restrictions hit hard: buying over 100 tickets in one go or purchasing online becomes a misdemeanor, with in-person sales at licensed agents only.
“Only cash, checks, or debit cards,” the bill mandates, banning mobile apps and phone bets. Age checks and limits on lottery insiders claiming prizes add teeth, with violations sparking Class A or B charges.
Boosting Transparency
The bill ramps up accountability, creating a lottery advisory committee under TDLR with public, agent, and expert members, per the data. “Open meetings and annual reports,” SB 3070 requires, ensuring public access.
Annual audits by the state auditor, 18-month record retention, and public meeting disclosures on TDLR’s website for five years aim to keep things clean.
A new security unit under a financial crimes intelligence center will tackle lottery-related fraud. “The governor and attorney general can inspect agents,” the bill adds, tightening the leash.
SB 3070 sidesteps a budget roadblock, as the House cut the Lottery Commission’s funding. An alternative bill, SB 2402, to keep the Commission, stalled after missing a key House deadline.
“Without SB 3070, the lottery could fold,” lawmakers warned, noting the bill’s transfer to TDLR keeps it alive. The House has until May 23 to greenlight SB 3070, or the lottery faces a tough road.
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