A measure to dissolve the Texas Lottery Commission (TLC) was passed in both legislative chambers leaving Gov. Greg Abbott’s signature as the last step for enactment.
The Texas Seante approved the House version of Senate Bill 3070 was signed in the Texas Senate on Sunday. The measure, introduced by Sen. Bob Hall, was initially passed by the Senate last month before reaching the House where it underwent a series of amendments.
The House passed the measure with changes sending it back to the Senate for final approval. The Senate’s final passing of SB 3070 leaves it in the hands of Abbott as the state’s lottery faces scrutiny over fraud allegations related to multi-million dollar jackpots.
SB 3070 ends the TLC and transfers lottery gaming to the Texas Department of Licensing and Regulation (TDLR). The bill prohibits and criminalizes playing lottery games by telephone or “through an internet application or mobile internet application.” A person who violates the bill’s standards for online play is subject to a Class A misdemeanor.
SB 3070 also mandates that a person is barred from selling one individual more than 100 lottery tickets in a single transaction. Under SB 3070, a violation of the limit is considered a Class B misdemeanor. The measure also places bingo under regulation by the TDLR.
The TDLR will undergo a sunset review to determine viability. The sunset review will be conducted in 2029 and will allow the state to evaluate if it should keep the lottery open.
An attempt to ban lottery games in Texas
Hall introduced SB 3070 as a compromise to Senate Bill 1988, a measure he introduced earlier this year that proposed an abolishment of the Texas lottery entirely. The bill was left pending in committee leading Hall to introduce SB 3070 as the “next best thing.”
Lawmakers had a sense of urgency with SB 3070 as the Texas legislature only meets in odd-number years leaving at least a two-year window for the issue to have been revisited.
Under SB 3070, the TLC will no longer operate after Sept. 1. If SB 3070 is vetoed by Abbott, the TLC will still dissolve along with the operation of the state’s lottery.
The governor called on the Texas Rangers in January to investigate two incidents related to the state’s lottery.
“Texans must be able to trust in our state’s lottery system and know that the lottery is conducted with integrity and lawfully,” said Abbott at the time.
Texas lottery draws backlash
Earlier this year, the TLC declared lottery ticket couriers unlawful after an investigation by the Houston Chronicle that found a group of investors colluded to spend millions to purchase the Lotto Texas jackpot. The probe led to a class action lawsuit and the resignation of former TLC Executive Director Ryan Mindell, who assumed the rule after Gary Grief retired. Grief is a defendant in the suit over claims of facilitating a “fraud scheme.”
The former TLC director has denied any wrongdoing.
The commission’s Acting Deputy Executive Director, Sergio Rey, is also under legal fire.
Last month, an unnamed Texas woman filed a suit against Rey for withholding a $83.5 million jackpot ticket purchased through courier service Jackpocket. The plaintiff claims the TLC and Rey violate Texas law by refusing to pay the jackpot prize.
The plaintiff claims she was never notified by Rey or the TLC that the winning ticket was invalid or unlawful and she has yet to receive the funds after presenting the winning ticket to the commission, which determined she was the lawful bearer of the winning ticket.
The plaintiff is seeking declaratory and injunction relief over the nonpayment.
