How is the Texas Lottery performing after the transition to the TDLR?

The winds of change swept through the Texas Lottery this year, but if you're just checking your scratch-off tickets, you might not have even noticed. After years of controversy over bulk ticket buying, courier services, and questions about jackpot transparency, lawmakers decided it was time for a major overhaul.

The result? The Texas Lottery Commission was officially dissolved, and oversight was handed to the Texas Department of Licensing and Regulation (TDLR). But did this shakeup change how Texans play, or just how the game is run behind the scenes?

A switch to TDLR management

In 2025, the Texas legislature approved Senate Bill 3070, which abolished the long‐standing Texas Lottery Commission and shifted oversight of the state lottery to TDLR, effective September 1. The move came after the Texas Lottery was dealing with many high‐profile controversies around bulk ticket purchases, lottery couriers, and questions about the integrity of how large jackpots were being won.

While the restructuring aimed to bring stronger regulation and transparency, which includes caps on ticket purchases, courier bans, and annual audits, there were still critics saying the new agency faces a massive learning curve overseeing an $8 billion operation.

Strong sales, big contributions, and responsible gaming push

Even with this shift in oversight of the program, the Texas Lottery continued to deliver strong results in fiscal year 2025. Total sales reached $7.91 billion, generating $1.8 billion for state causes including education and veterans' services.

While industry observers flagged this move in oversight as a major shift, lottery players in Texas haven't seen any disruptions at the ticket window. Executive Director Courtney Arbour stressed the move was designed to preserve continuity for players, retailers, and beneficiaries.

Strong performance despite challenges

Even with fewer headline-grabbing national jackpots and these new regulations in place, the lottery held its ground. While multi-state games like Powerball and Mega Millions saw sales decline, largely due to fewer billion-dollar top prizes, the in-state draw and scratch-ticket games remained solid.

For instance, scratch tickets brought in more than $6.4 billion. This total contributed to over 80% of the total sales. Despite the decline in multi-state ticket sales, the Texas Lottery's in-state draw games remained strong. They brought in $811.6 million of the $1.48 billion draw game total.

In addition, administrative costs were about $289 million. This is equal to just 3.65% of sales, which is among the lowest rates for U.S. lotteries.

Funding education and veterans

While the oversight has changed, the message to Texas Lottery players has remained the same: your ticket supports Texas. For FY 2025, contributions to the state were $1.8 billion.

These contributions included $1.77 billion that was sent to the Foundation School Fund. The state lottery also sent $31.1 million to the Fund for Veterans' Assistance.

Since the program's inception, the state lottery has sent more than $35.5 billion to public education and nearly $280 million to veterans.

Responsible gaming and reassurance

This change to the TDLR also brought strengthened protections for players. The state lottery added strict ID scanning on self-service machines, lowered the cash-in limits, and banned lottery courier services for tickets.

While retailers were never authorized to accept credit cards for lottery purchases, the TDLR issued updated notices that reinforced that only cash and debit cards may be used for purchases.

In addition, the Texas Lottery maintained consistent responsible gambling messaging through their social media, customer service on-hold messages, retailer communications, and online training videos that were made available 24/7 to retailers.

The TDLR has stated that these moves reflect its commitment to operating the lottery with integrity and safeguarding the player experience.

What's next for the Texas Lottery?

While FY 2025 was a solid showing, TDLR and the Texas Lottery are keeping an eye on emerging trends. This is especially true when it comes to draw-game participation and evolving consumer preferences.

With a smooth transition complete, the stage is set for the next chapter. The message: behind the change in management, the mission remains unchanged. They want to offer fun, trusted lottery games while benefiting Texans.

Enjoy playing the Texas Lottery, and please remember to play responsibly.