The Texas House and Senate have successfully passed a bill that aims to dissolve the Texas Lottery Commission (TLC), currently awaiting the approval of Governor Greg Abbott. Senate Bill 3070 (SB 3070), introduced by Senator Bob Hall, advocates for the transfer of lottery operations to the Texas Department of Licensing and Regulation, effectively terminating the operations of the existing TLC.
### Integrity Concerns Spark Calls to Dissolve the Texas Lottery Commission
The controversy surrounding the integrity of the TLC intensified after a player won an $83.5 million jackpot in February through the lottery courier app, Jackpocket. Although lottery couriers, enabling users to order tickets through an app that purchases physical tickets on their behalf, are popular in various states, most states, including Texas, do not regulate these services.
This significant jackpot win prompted the TLC to prohibit lottery couriers. In the meantime, Governor Abbott initiated an investigation revealing another case: a $95 million jackpot claimed by a secretive syndicate that used a lottery courier after investing $26 million in nearly every possible number combination. This led Lt. Gov. Dan Patrick to call upon the Texas Rangers for a more thorough investigation of the TLC and the unrestricted use of lottery couriers.
Following these incidents and growing concerns, the TLC’s Executive Director, Ryan Mindell, resigned in April. Subsequently, the TLC voted to ban lottery couriers in an effort to regain public trust.
### Key Provisions of SB 3070
Amid the ongoing investigations, Governor Abbott emphasized Texans’ need for confidence in a lawful and integrity-based state lottery system. While there were suggestions to abolish the Texas lottery entirely, this idea did not gain substantial support.
SB 3070, progressing quickly through legislation, includes several key measures such as limiting the purchase of a maximum of 100 lottery tickets per transaction, forbidding online lottery ticket sales, and creating a Lottery Advisory Committee to provide external recommendations for lottery operations. Additionally, the Sunset Advisory Commission must evaluate the lottery system before August 31, 2027, to ascertain its future.
### TLC is Facing a Lawsuit for an Unpaid Jackpot
As the TLC is on the verge of dissolution, it is currently embroiled in a lawsuit related to the unpaid $83.5 million jackpot. The claimant, known as Jane Doe, argues that the TLC has illegitimately withheld her winnings.
Jane Doe reported purchasing her ticket through Jackpocket at Winners Circle, a licensed lottery retailer in Austin. She claimed her prize at TLC on March 18 without initial complications. However, despite the TLC’s later decision to ban lottery couriers, the lawsuit argues that changing regulations after the drawing is not permissible and challenges the legality of the retroactive ban.
As the TLC nears its potential termination, the outcome of this lawsuit remains uncertain.