In a bombshell move that’s got both lawmakers and lottery fans buzzing, the Texas Senate has voted to dissolve the Texas Lottery Commission (TLC). That’s right — the very agency that’s been running scratch-offs, Powerball, and Mega Millions in the Lone Star State for over three decades is getting the boot. Under Senate Bill 3070, all lottery operations will soon be transferred to the Texas Department of Licensing and Regulation (TDLR).

This is a historic shake-up in Texas gambling oversight, spurred by high-profile controversies, legal drama, and calls for reform. Whether you buy your scratch tickets religiously or just play Powerball when the jackpot hits a billion, this decision impacts every Texan who’s ever taken a shot at hitting it big.
Say Goodbye to Texas Lottery Commission
Topic | Details |
---|---|
What’s Happening? | Senate Bill 3070 abolishes the Texas Lottery Commission by 2026. |
New Oversight | All lottery duties shift to Texas Department of Licensing and Regulation (TDLR). |
Why the Change? | Scandals involving bulk ticket purchases, courier services, and leadership resignations. |
New Rules | Ticket purchase limits, machine restrictions, courier service ban, and family-member exclusions. |
Timeline | Transition starts immediately; full takeover by 2026; future review set for August 2027. |
The Texas Senate’s bold move to dissolve the Texas Lottery Commission isn’t just about scandal cleanup — it’s about reshaping the future of gambling in the state. Whether you’re for it or against it, this change is one of the most dramatic overhauls in the history of U.S. lottery systems.
Why Is the Texas Lottery Commission Being Scrapped?
So what made lawmakers say “enough is enough” to the TLC?
1. The $95 Million Jackpot Loophole
In 2023, Australian gambler Zeljko Ranogajec and his syndicate legally purchased almost every possible combination of Powerball numbers in a $95 million draw — and won. That’s not illegal under Texas law, but it showed how outdated and easily exploited the system had become. The public didn’t take it well.
2. Courier Service Chaos
Then came the courier mess. A service helped a player win $83.5 million, but it raised red flags. Who regulates these services? Are they legal? In response, the TLC banned courier apps like Jackpocket and Lotto.com. That move sparked multiple lawsuits, and even accusations of discrimination against digital platforms.
3. Leadership Fallout
After a wave of criticism, Executive Director Ryan Mindell and Commissioner Clark Smith both resigned. With public confidence low and lawmakers fuming, the Senate decided it was time for a clean slate.
What Senate Bill 3070 Actually Does
Let’s break down the meat of this legislation:
Lottery Commission Gets Dissolved
The TLC will officially cease to exist. Its 250+ employees and all operations will be folded into the Texas Department of Licensing and Regulation.
Rules Get Tighter
New regulations include:
- Limit of 100 tickets per transaction
- No more than 5 lottery machines per retailer
- Immediate family of employees banned from playing
- Permanent ban on courier services — and violators may face criminal charges
A Sunset Review for 2027
By August 31, 2027, a Sunset Advisory Commission will assess whether the Texas Lottery should even continue operating at all. This could mean a future where lottery games are gone for good — or completely reimagined.
What This Means for Players, Retailers & Tech Startups
This isn’t just bureaucracy — this hits real people.
If You’re a Player
You might not feel much difference at first. Tickets will still be sold. But you’ll see:
- Stricter ID checks
- Fewer machines at stores
- No more playing through apps or delivery services
And if you’re someone who plays big — buying 500 tickets when jackpots soar — those days are over.
If You’re a Retailer
Stores could lose income from reduced machine limits. Less traffic. Fewer impulse buys. Many may need to reapply for licensing under the new TDLR regime.
If You’re in the Lottery Tech Game
Courier startups are in trouble. Jackpocket, Lotto.com, and others face a hostile environment. Their business model is now essentially outlawed in Texas. Investors are pulling out. Lawsuits are pending.
Texas Isn’t the First State to Crack Down
If this all feels a bit over-the-top, think again.
Other states like New York, California, and Illinois have faced similar scandals and scrutiny around third-party lottery vendors and digital sales. Many are tightening rules. Texas, however, just made the boldest move by killing the entire commission.
What Comes Next: The Transition Timeline
2025
- Immediate prep begins for TDLR to absorb TLC responsibilities.
- Lawsuits from courier services expected to drag into federal court.
2026
- Full transition: TLC officially dissolved, operations shift to TDLR.
- New rules fully in place.
2027
- Texas Sunset Advisory Commission conducts formal review.
- Possibility of full repeal of the state lottery if deemed “unethical or inefficient.”
What’s the Public Saying?
Public reaction is mixed.
- Lottery critics are cheering the cleanup, calling it long overdue.
- Players are frustrated by the courier ban and tighter limits.
- Retailers are worried about lost revenue and bureaucracy.
- Tech innovators say Texas just killed off a promising digital ecosystem.
The buzzword? Accountability. Lawmakers want the lottery to be clean, safe, and fair. But there’s also a growing concern that Texas may be overcorrecting and driving away innovation.
Frequently Asked Questions (FAQs)
1. Will the Texas Lottery still operate after 2026?
Yes, but under a new department (TDLR). However, a 2027 review may recommend ending the lottery altogether.
2. Can I still buy tickets at stores?
Yes, tickets will still be available at authorized retailers with stricter purchase limits.
3. Can I use courier services or apps to play?
No. All courier services are banned. Using or operating them could lead to criminal penalties.
4. What happens to the lottery employees?
Most will be reassigned to the Texas Department of Licensing and Regulation.
5. Will lottery prizes and payouts be affected?
So far, payouts remain the same, but reforms could introduce new limits or taxes in the future.