Goodbye to the Texas Lottery? This is the bill that wants to abolish the game entirely

The Texas Lottery faces an uncertain future as the legislature closes in on a deadline that could see it wiped out forever. There are now less than 30 days remaining in the session, and lawmakers must act to either continue or abolish the scheme, which contributes approximately $2 billion annually to public education and veterans’ programs.

The lottery’s continuation hinges on two key legislative actions: reinstating its funding in the biennial state budget—after a House amendment removed it—and passing one of two “sunset” bills (House Bill 1505 or Senate Bill 2402) to renew the Texas Lottery Commission.

The commission is currently under a routine 12-year review by the Sunset Advisory Commission; failure to pass these measures would result in the agency’s closure after August 31.

‘If the lottery were to adopt a motto, it would have words like cheat, steal, and cover-up’

Over the past weeks and months, criticism has become intense regarding the commission’s lack of control, particularly regarding third-party courier services that sell lottery tickets online.

These couriers purchase tickets from licensed retailers and provide digital copies to customers, a practice some lawmakers argue violates state law and facilitates illegal sales to minors and out-of-state individuals. In response, the Texas Lottery Commission voted to ban such courier services, leading to legal challenges from companies like Lotto.com.

Senator Bob Hall introduced Senate Bill 1988, aiming to abolish the lottery entirely, citing systemic issues within the commission. The bill remains pending.

“If the lottery commission were to adopt an official motto today, it would have to include unique words like lie, cheat, steal, mislead and cover-up. This bill is intended to send a strong message to not just the lottery commission, but to all state agencies that have assumed authority not given to them by the Legislature“, State Sen. Bob Hall said during the hearing on SB 1988.

Further scrutiny arose from a 2023 incident where a corporation won a $95 million jackpot by purchasing nearly every possible number combination. This event prompted investigations by the Texas Rangers and the Attorney General’s office, and led to the resignation of Executive Director Ryan Mindell.

According to the lottery commission, while a lot of the lottery’s revenue goes to prize payouts, less than 24% of the lottery’s $8 billion in annual sales goes to Texas public schools.

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"If we got rid of the lottery, it wouldn’t impact schools at all, just like how if we go out and buy a bunch of lottery tickets today, it wouldn’t create more funding for schools,” Chandra Villanueva, director of policy and advocacy for progressive nonprofit Every Texan. “It’s formula driven, and the state would just have to make it up through general revenue.”

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