Texas Lottery Commission Dissolved, TDLR Takes Over Operations

DALLAS, Texas — A significant change has occurred in the management of the Texas Lottery. As of September 1, the Texas Lottery Commission has been officially abolished under a new law, Senate Bill 3070, transferring its duties to the Texas Department of Licensing and Regulation (TDLR). This transition follows increasing concerns about the integrity of the lottery system, particularly after two multimillion-dollar jackpots were won recently.

Under this new law, the operational oversight of the Texas Lottery, a massive $8 billion enterprise, falls to TDLR. The agency is tasked with maintaining the lottery and charitable bingo games while ensuring compliance with updated regulations. “The transition of the state lottery to TDLR will not affect Texans’ ability to participate in games offered by the Texas Lottery and Charitable Bingo,” a TDLR press release stated.

The move to dissolve the Texas Lottery Commission has been described as a compromise following scrutiny from lawmakers, who raised concerns regarding allegations of money laundering and irregularities in ticket sales. Specifically, legislators discovered that a single group had purchased 99% of possible ticket combinations for a significant lottery draw, leading to fears of manipulation.

Glenn Neal, the lottery transition director, noted that many of the commission’s employees would continue in their roles and offices under the TDLR umbrella. The transition is expected to be smooth as most personnel and operations will remain unchanged physically. However, TDLR’s responsibilities will expand significantly, increasing its staffing by approximately 50%.

With the transition, new regulations have been implemented, including restrictions on the number of tickets a person can purchase and a ban on online ticket sales. Court proceedings related to the lottery commission also reveal ongoing legal battles. One lawsuit involved a woman who was denied her $83.5 million jackpot due to purchasing her ticket through a courier service, a case that has brought further scrutiny onto the previous commission.

TDLR has already begun establishing advisory committees to guide its new oversight role, aiming to improve the lottery’s standing and performance after past controversies. In 2024, the lottery is projected to contribute around $1.4 billion to public education in Texas, but figures are reportedly declining, adding urgency to ensure the lottery’s viability.

As the agency moves forward with its new management plan, TDLR’s Executive Director Courtney Arbour expressed optimism, saying, “What I’ve come to learn about lottery players is they like change. They like new ticket options.” The future of the lottery will be reviewed again in 2029, and if legislation is not passed to ensure its continuation, the lottery could face potential dissolution.