Texas Lottery Oversight Transferred to New Agency

AUSTIN, Sept. 1, 2025 - Management of the Texas Lottery officially moved today from the 32-year-old Texas Lottery Commission to the Texas Department of Licensing and Regulation (TDLR), marking the first stage of a comprehensive overhaul aimed at restoring public confidence and preventing future controversies.

The transfer, enacted under Senate Bill 3070, dissolves the standalone Lottery Commission and places lottery and charitable bingo operations under TDLR oversight. A transition team has been appointed to review every existing contract by December 1, 2025, and to establish a permanent Lottery Advisory Committee by early 2026.

Dawn Nettles, founder of the watchdog site LottoReport.com, expressed cautious optimism. “I’ve met the people at TDLR, and they appear sincere and honest,” she said, but urged early attention to game structure. Nettles recommended reverting Lotto Texas to two weekly draws with a 6-of-50 matrix to boost lagging sales.

Rice University political analyst Mark Jones noted that despite legislative scrutiny, lottery revenues remain a vital funding source for public schools and veterans. “It’s popular among many Texans, and it provides substantial revenue for public schools - a hole that would be hard to fill if the lottery went away,” he said.

Under the new arrangement, most Commission staff remain in place at their current locations, now reporting to TDLR’s leadership. Interim Deputy Executive Director Sergio Rey will oversee the transition of lottery and charitable bingo operations.

Lawmakers mandated a sunset review in 2029 to determine whether the lottery should continue or be further restructured. Until then, Texas players can continue participating in all existing games, now under tighter regulatory scrutiny designed to prevent issues such as bulk ticket purchases and unauthorized online sales.