The move came after a session full of debate over school funding, taxes and other big issues. Lawmakers decided the state still needed the lottery’s revenue but wanted to curb practices they saw as unfair. Beginning September 1, the lottery will move under the Texas Department of Licensing and Regulation.
Why Lawmakers Acted
During the 2025 legislative session, two controversies pushed the lottery into the spotlight. First, a single group secured a $95 million prize by buying 99% of all possible ticket combinations in the Lotto Texas game. Many saw this as an abuse of the system.
Second, apps called lottery couriers let people order tickets online. Couriers printed tickets in small stores, scanned them and sent images to buyers through digital apps.
Some lawmakers argued that selling by app or website broke state law and that the Texas Lottery Commission had not enforced the rules fairly.
Lt. Gov. Dan Patrick and Sen. Bob Hall, R-Edgewood, made stopping courier sales a top goal. They introduced SB 3070 despite the deadline having passed, winning special approval so the bill could move forward.
Supporters said the changes were needed to protect ordinary players and to prevent another case of one group dominating the lottery.
What Changes Under the New Law
SB 3070 keeps the lottery running through 2029 but with strict new rules. Players can only buy up to 100 tickets in person at approved retailers. Selling tickets online, or through apps or websites, is now a class A misdemeanor. Anyone caught offering courier services could face up to a year in jail and fines.
The law also abolishes the Texas Lottery Commission. Its day-to-day duties will shift to the Texas Department of Licensing and Regulation, which has set up a small transition team. The change aims to streamline oversight and avoid the back-and-forth decisions that occurred this year when the commission first allowed courier services, then moved to ban them mid-session.
Lawmakers will review the lottery in 2029 through the Sunset Advisory Commission before deciding whether to extend it. Critics like Sen. Hall say they may still push to end the lottery completely, but for now, they view this law as “the next best thing” to abolition.
Why the Lottery Matters for Schools
Since its start in 1992, the Texas Lottery has sent billions to public schools. Each year it contributes around $2 billion to the Foundation School Fund, which supports classrooms across the state.
Ending the lottery outright would have left a huge budget hole that lawmakers could not fill this session. Even with the new restrictions, the lottery remains a key source of money for education.
Lawmakers needed to balance the desire to curb questionable practices with the need to fund schools. In the end, they chose to impose limits rather than shut down the games. State leaders say these guardrails will protect players and keep the revenue flowing without the problems that sparked this debate.
