The Texas House State Affairs Committee has taken a major step toward shrinking the state’s gambling landscape, passing Senate Bill 3070 by a 10-4 vote.
The legislation, which cleared the Texas Senate unanimously, seeks to abolish the Texas Lottery Commission and implement sweeping changes to the operation of the lottery, including a ban on so-called couriers.
Since its founding, the commission has been mired in controversy, but recent concerns about accountability, unlawful expansion, and money laundering have thrown the agency into unseen depths of crisis. The agency and its operations are the subject of multiple ongoing investigations.
Abolishing the commission and tightening controls on lottery operations are seen as a last chance for the beleaguered “games of Texas.” If the lottery fails to operate within the lawmaker’s new parameters, it can be shut down entirely in two years.
The bill will also comprehensively restructure how the Texas Lottery is administered, including oversight by the governor, lieutenant governor, and speaker. Lt. Gov. Dan Patrick has been on a crusade to reform the rogue agency since the legislative session began, going on multiple site visits to “sweatshop” ticket-printing operations and the agency itself.
In 2023, the Texas Senate banned online lottery ticket resellers, but that bill was killed in the Dade Phelan-led Texas House. Should SB 3070 pass, unamended, resellers would be legislatively banned.
The Lottery Commission, buckling to public and legislative pressure, banned resellers by rule in late April.
Given the speed with which the bill was referred to committee, heard, and passed, it’s likely to reach the full House in the coming days as the legislative session winds down.
Addressing issues with the wayward Texas Lottery and banning a backdoor legalization of marijuana in Texas have been marked as must-pass legislation by Lt. Gov. Patrick.
The session ends on June 2nd.
