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Texas Lottery Commission to be Abolished as TDLR Takes Over

AUSTIN, Texas — On Sept. 1, the Texas Lottery Commission will be abolished, transferring the management of the state-run lottery to the Texas Department of Licensing and Regulation (TDLR). This change aims to streamline operations and address recent controversies surrounding the lottery.
The transition follows a new state law that charges TDLR with overseeing the $8 billion lottery operation originally initiated by former Governor Ann Richards to support public education. Glenn Neal, the lottery transition director, stated, “One thing that plays into this that makes the transition a little easier from a sort of scaling standpoint is that no one’s really moving right now.” Employees will continue working in the same office with the same responsibilities.
This shift comes after significant scrutiny of the lottery commission, particularly regarding multimillion-dollar jackpot wins and concerns over money laundering schemes. Legislators, led by Lt. Gov. Dan Patrick, expressed doubts about the commission’s integrity and took steps to impose stricter oversight.
The new law, SB 3070, will enforce regulations aimed at preventing illegal play in the lottery system. Among the changes are tighter restrictions on ticket purchases and the banning of online lottery sales by courier companies. These precautions were prompted by incidents where a single group purchased 99% of Lotto Texas tickets to win a $95 million jackpot.
TDLR has experience with absorbing new responsibilities, having taken on 25 programs since 2015. However, the lottery’s operation is its largest undertaking to date. The department will increase its staff by 50%, adding nearly 300 employees to manage more than 20,000 lottery retailers.
In recent years, the Texas Lottery has faced a decline in revenue, contributing to a drop in funding for public education. Data shows the lottery is on course to generate $500 million less than in fiscal year 2024, marking a second consecutive year of decreased revenue.
Courtney Arbour, executive director of TDLR, acknowledged the challenges ahead but remains optimistic about revitalizing lottery engagement. “What I’ve come to learn about lottery players is they like change,” Arbour said, indicating a need for new game options to attract players.
As TDLR prepares for this significant transition, it plans to establish advisory committees to help steer the future of the lottery. The first committee meetings are slated to occur shortly after the transfer.
With the deadline for legislative review set for 2029, the TDLR’s performance will be critically analyzed. Failure to demonstrate success could lead to the complete dissolution of the Texas Lottery.