Following a bombshell report exposing alleged child labor and money laundering tied to a $95 million Texas Lotto operation, state lawmakers are calling for investigations—and some are pushing for sweeping reforms or even abolition of the Texas Lottery Commission altogether.
The report, first uncovered by the Houston Chronicle and now drawing legislative scrutiny, revealed a controversial scheme in which a single buyer purchased nearly all possible number combinations for an April 2023 Lotto Texas drawing. The paper recently reported on a video circulating the capitol, which reportedly shows children working at state-authorized lottery terminals as part of the operation, raising serious legal and ethical concerns.
State Rep. J.M. Lozano (R–Kingsville), a member of the powerful House Appropriations Committee, said the revelations should fundamentally reshape how lawmakers approach oversight of the Texas Lottery Commission.
“The allegations of child labor and money laundering are earth-shattering and represent a game changer in the sunset review process for the Lottery Commission,” said Lozano, adding that the latest revelations likely only scratch the surface.
“After 35 years in existence, we have only scratched the surface. I believe that the revelations this week are just a drop in the bucket which will soon be filled by examples of abject failure, corruption, and multiple indictments,” he said. “A state-run lottery, essentially government-sanctioned gambling, is no match for the level of greed and ingenuity of these global crime syndicates. One thing seems certain, they almost always have someone on the inside.”
State Rep. Briscoe Cain (R–Deer Park), a longtime opponent of the Texas Lottery, was blunt in his assessment, saying, “These allegations are concerning. The Lottery Commission needs to answer for this (and then be abolished).”
State Rep. Brian Harrison (R–Midlothian), also a member of the House Appropriations Committee, expressed frustration with the lack of oversight over state agencies, calling the allegations “disturbing” and demanding action.
“What has become abundantly clear in Texas is the legislative branch simply does not do real oversight of our state agencies, and I’m fighting like hell to change that to protect taxpayers,” Harrison said. “I have been proud to deliver many conservative victories for Texans by bringing transparency to the Austin swamp and will continue to fight to hold woke, corrupt, unelected bureaucrats accountable.”
On the Senate side, Finance Committee member State Sen. Paul Bettencourt (R–Houston) did not mince words, saying, “It’s totally unacceptable and another example of what’s wrong with the lottery. In the last week, the Texas Senate has found a lot of things wrong with the lotto.”
State Sen. Lois Kolkhorst (R–Brenham), also on the Senate Finance Committee, signaled her support for State Sen. Bob Hall’s efforts to end online lottery courier sales, saying, “This issue deserves serious scrutiny, which is why I support Chairman Bob Hall’s effort to tackle this problem and will likely be joint-authoring on his legislation.”
Hall’s proposal seeks to end online lottery couriers in Texas to curb fraud and unauthorized third-party lottery sales.
With the Texas Lottery Commission set for a full sunset review, lawmakers are signaling that major changes—or even outright abolition—could be on the table.
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