A legislative committee in Texas has advanced a bill designed to maintain the state lottery while eliminating the existing Texas Lottery Commission. This move transfers oversight to a new regulatory entity amid ongoing discussions and investigations surrounding the lottery’s operations.
The House State Affairs Committee passed the legislation with a vote of 10-4, shifting lottery management to the Texas Department of Licensing and Regulation and initiating the formation of an advisory board. The bill is now set for a vote in the full House, with the current legislative session concluding on June 2.
The new measure intends to address escalating issues regarding the integrity and administration of the Texas Lottery, which is currently under a 12-year Sunset review. Should no legislative action be taken, the Lottery Commission is scheduled to dissolve on August 31.
Drafted by Sen. Bob Hall, R-Edgewood, and already passed by the Senate, the bill bypasses the ongoing Sunset review process by extending the evaluation period and introducing new reforms. Key reforms include mandatory age verification systems at retail locations and a two-year review cycle for lottery operations.
Proponents argue that the bill preserves the Texas Lottery while dismantling the current commission responsible for oversight.
This legislative action follows increased scrutiny regarding the use of couriers for online lottery ticket purchases, a method that lawmakers suggest led to infringements of Texas regulations prohibiting online and phone sales and possibly allowed underage individuals to engage in the lottery. The state has since banned couriers from purchasing tickets.
The lottery has recently been plagued by investigations into two massive jackpots. A $95 million prize awarded in April 2023 was claimed by an overseas group that reportedly bought over 25 million $1 tickets, allegedly covering “nearly all potential number combinations,” as stated by Governor Greg Abbott when announcing a Texas Rangers investigation.
In another incident, an $83.5 million winning ticket was acquired from an Austin retailer associated with a courier service, leading to further investigation.
Lieutenant Governor Dan Patrick has urged investigators to broaden their scope to encompass “all issues pertaining to the Lottery Commission’s prior approval of lottery couriers in Texas and any resultant potential crimes, either internally or externally related to the Commission’s actions or failures.”
The proposed reforms and investigations illustrate an increasing legislative effort to restore trust in the lottery system, which generates billions in annual revenue but has faced criticism over transparency and regulatory adherence.