Amid an ongoing debate about the conduct of the Texas Lottery Commission (TLC), State Sen. Bob Hall laid out his case for abolishing the Texas Lottery altogether in a committee hearing on Monday.
Hall is the author of SB 1988, which would repeal the state Lottery Act and shut down the lottery division of the commission as of Jan. 1, 2026.
Any division funds allocated to specific lottery operations as of Jan. 1 would be deposited in the state treasury to be used only for the Foundation School Program. The state’s charitable bingo operations would be placed under the purview of the Texas Department of Licensing and Regulation (TDLR).
Monday’s hearing came after Texas Lt. Gov. Dan Patrick said last week that the Lottery is “on life support” and urged that if the state continues to offer lottery games, they should be handled by the TDLR.
Hall lays out allegations of ‘organized crime’
Speaking to the Senate Committee on State Affairs on Monday, Hall referenced a 2023 incident in which a group of individuals spent $25 million to purchase 99% of winning lottery ticket combinations and netted a $95 million jackpot.
Hall told the committee that he and others believe that an, “organized crime scandal has been operating behind the shield of being a Texas State government agency.” He alleged that the “illegal organized crime lottery operation we now have” was aided by lottery staff and commissioners who changed rules, turned a blind eye and denied they had authority to stop illicit activities.
Specifically, Hall accused the lottery of knowingly violating Texas law by creating loopholes and changing rules to allow internet group purchases via third parties.
“There is no way to reorganize, restructure or restore the integrity of the government-run Texas Lottery,” he concluded in his presentation of the bill. “I strongly believe that the only legislative change that would have a meaningful impact and eliminate the culture of corruption of the organized crime center embedded in the Texas government is legislation that completely and permanently abolishes the Texas Lottery Commission.”
Courier issues spreads from legislature to courtroom
The proposal to abolish the lottery — and Hall’s reference to third-party purchases — comes amid intense scrutiny on the way in which digital lottery couriers operate with the state and in relation to the lottery.
“The courier companies were the middleman between the groups and advanced lottery commission officials were deliberately indifferent,” Hall added. “At worst, they were co conspirators in the vastest financial crime since Enron.”
The TLC voted late last month to ban courier services from operating in the state in the wake of recent allegations, a decision which is being challenged in court by Lotto.com, a member of the Coalition of Texas Lottery Couriers (CTLC).
Vice-chair says abolishment would be ‘nuclear option’
Committe Vice-Chair Angela Paxton acknowledged that Hall’s solution is “definitely the nuclear option” but acknowledged that what Hall decribed was “incredible disturbing”.
The Lottery’s temporary Executive Director Sergio Rey, who joined the commission as its chief financial officer in late 2023 and recently replaced Ryan Mindell in the role following Mindell’s resignation amid the scandal, then told the committee that the commission’s leadership was and remains focused on ensuring that it follows the law and operates with integrity and honesty.
“But the agency didn’t follow the law,” countered Hall. “The agency specifically made rule changes that were 180 degrees out from what the law said. I’m not accusing you, I’m just trying to [work out] what is the culture there that this kind of activity could be going on… Nobody questioned it.”
Timeline is short for action
Per local media, the TLC is scheduled for a Sunset Review, meaning the legislature would have to pass a bill in order to extend the lifespan of the agency. Two such proposals currently exist in the legislature but neither SB 2402 nor HB 1505 have been heard in committee.
SB 1988 was left pending in committee at the end of Monday. It could still be sent to the Senate floor, but there are just nine days left until the Texas House bill deadline.
