Texas House Abolishes Lottery Commission, Transfers Control to Licensing Department

The Texas House has passed Senate Bill 3070, a bipartisan bill to dissolve the Texas Lottery Commission (TLC) amid ongoing scandals and transfer oversight of the $8 billion-a-year Texas Lottery and Charitable Bingo to the Texas Department of Licensing and Regulation (TDLR). The legislation aims to implement reforms and place 'guardrails' around lottery operations, allowing TDLR to manage the lottery while the Texas Sunset Advisory Commission evaluates the agency's progress, with the House version calling for a review by 2029. The bill includes new restrictions such as ending lottery mobile applications and banning online ticket sales. Despite calls from some lawmakers to abolish the lottery entirely due to allegations of wrongdoing and controversial jackpot wins under investigation, an amendment to end the lottery was narrowly defeated. Key sponsors emphasize the lottery's critical funding contributions, including about $2 billion annually for public education and millions for veterans. The bill marks a significant restructuring intended to restore public trust and ensure continued lottery operations amid scrutiny from Texas Rangers and the Attorney General's Office.