In a critical move to reform the Texas Lottery, a new Senate bill filed by Senator Bob Hall could provide the much-needed lifeline to an increasingly scrutinized institution. Senate Bill 3070, introduced at the tail end of the Senate session, seeks to abolish the Texas Lottery Commission and place oversight of the state-run lottery under the Texas Department of Licensing and Regulation. This bold step aims to address concerns raised over illegal activities and enhance accountability within the lottery system.
The bill, seen as a last-minute reprieve, comes in the wake of growing criticisms after two high-profile lottery jackpots raised alarms about the role of lottery couriers. These couriers, who use licensed retail stores to print and scan tickets for customers, have been linked to large-scale ticket purchasing that fuels concerns over potential money laundering, as well as underage and out-of-state sales.
One jackpot, worth $95 million, was claimed by a group using multiple retailers and lottery terminals to purchase the majority of possible combinations. The controversy escalated when a second jackpot win, involving an online lottery app called Jackpocket, further fueled fears about the integrity of the system. To address these concerns, Senate Bill 3070 proposes comprehensive measures, including a complete ban on lottery couriers and online ticket sales, alongside criminal penalties for violations. The bill also seeks to limit ticket purchases to 100 per customer, impose stricter regulations on the number of licensed terminals per retailer, and establish a lottery advisory committee.
While Senator Hall emphasized that the bill represents the "next best thing" to outright abolition, he pointed out that the measure would still ensure critical funding for public schools, which rely heavily on the billions generated by the Texas Lottery. Hall expressed hope that this bill would bring much-needed transparency and oversight to an industry that’s been mired in scandal. Bob Hall and other supporters of the bill are aiming to counter the growing opposition from some quarters, which suggests that the only way to address the problems of the Texas Lottery is to eliminate it altogether. While the current Sunset Commission review of the Texas Lottery is ongoing, SB 3070 could play a pivotal role in determining the lottery’s future.
In addition to tackling the lottery's issues, the bill contains provisions that will also reshape Texas' charitable bingo operations. It includes measures from other proposed bills like SB 1346 and SB 2153, which emphasize greater accountability for ticket sales, including for mass purchases by individuals and businesses. One of the most significant elements of the bill is the proposal to deputize high-ranking state officials, including the Governor, Lieutenant Governor, and Attorney General, as authorized inspectors. These officials would have the power to investigate licensed retailers and ensure compliance with the law. This provision came after Lt. Gov. Dan Patrick’s visits to courier-owned retailers, where he was denied entry to inspect lottery terminals. Patrick’s public videos of these visits have raised questions about transparency in the lottery business.
Despite the Sunset Commission's review of the lottery and its upcoming budget hurdles, Senate Bill 3070 stands as a potentially transformative solution for the Texas Lottery system. If passed, it will ensure that the state's flagship lottery operation continues to fund public education while imposing crucial reforms to address growing concerns over security, transparency, and accountability. With the June 3 deadline for the final passage of “sunset” bills approaching, SB 3070 could either be the last chance for reform or the beginning of significant changes in how Texas runs its lottery system.
