Texas Lottery Commission Dissolved Amid New Restrictions

A Seismic Shift for Texas Lottery

The move, which also bans online lottery ticket sales through courier services, was prompted by high-profile controversies. It aims to restore public trust in a system rocked by allegations of misconduct. “Texans deserve a lottery that is fair and transparent,” Abbott said, echoing concerns that led to the overhaul.

The TLC, which managed the state’s lottery for over three decades, faced scrutiny after two contentious jackpots: a $95 million Lotto Texas win in 2023, where a group bought 99% of possible ticket combinations, and an $83.5 million February 2025 win via a courier app, Jackpocket, still unpaid due to an ongoing Texas Rangers investigation.

Sweeping New Rules

SB 3070, authored by Senator Bob Hall, imposes strict regulations:

• Online ticket purchases via third-party apps are illegal, classified as a Class A misdemeanor with penalties up to $4,000 or a year in jail.
• Players must buy up to 100 tickets per transaction at licensed retailers during business hours, with age verification required.
• Retailers are capped at five lottery vending machines.
• Lottery staff and their families are barred from purchasing tickets.

The TDLR will assume control, with all TLC employees transitioning to equivalent roles. A new lottery advisory committee will provide industry expertise.

Steve Helm, TLC spokesperson, assured a “smooth, seamless transition” that won’t disrupt Texans’ ability to play, emphasizing cooperation with TDLR.

Why the Overhaul?

The reforms stem from mounting distrust in the TLC. Senator Hall accused the agency of “consistently lying” about its inability to regulate couriers, calling it a “criminal conspiracy to defraud Texans.”

A 2023 bulk purchase of 25.8 million tickets and the unpaid $83.5 million win by Kristen Moriarty, who sued the TLC, fueled the fire. Moriarty described her ordeal: “It was excitement and happiness at first, and then it just progressed to stress and anger.”

Lawmakers, including Lt. Governor Dan Patrick, prioritized banning couriers after allegations of money laundering and underage sales. Lotto.com, a courier service, sued the TLC, arguing the ban was abrupt and that it had sought regulation for years.

Despite calls to end the lottery entirely, its $2 billion annual contribution to public education funds swayed legislators to keep it, with Hall calling SB 3070 “the next best thing” to abolition.