News writer
The Texas Lottery has wrapped up its first full fiscal year under new leadership, and the results include record funding for veterans and increased contributions to public schools. The Texas Department of Licensing and Regulation (TDLR), which took over lottery operations on September 1, 2025, announced that the lottery contributed $1.85 billion to public education and veterans' services during fiscal year 2026.
That included $1.82 billion for the Foundation School Fund and a record $31.7 million for the Fund for Veterans' Assistance. Both amounts increased from FY 2025, helping make this the fifth-largest annual contribution in Texas Lottery history. The results come after a year of significant changes to how the lottery operates and how players can purchase tickets.
A record year for Texas veterans
Veterans were among the biggest beneficiaries of the lottery's latest financial results. The record $31.7 million contribution supports programs that provide financial assistance, transportation, housing assistance, and counseling for post-traumatic stress disorder.
Texas has approximately 1.5 million veterans, and the funding goes toward organizations and agencies providing direct services to veterans and their families.
Veterans-themed scratch-off tickets also had a record year, generating $132.3 million in sales. That's an increase of more than 10% compared to FY 2025. Since the first veterans-themed scratch-off launched in 2009, the Texas Lottery has contributed more than $311 million to programs supporting veterans.
New leadership brings tighter lottery rules
The financial results come during TDLR's first year overseeing the lottery after lawmakers approved legislation transferring its operations to the agency. The transition brought several changes aimed at improving security and accountability. Among the biggest changes was the prohibition of online lottery ticket purchases and lottery courier services. Players must now purchase tickets in person at licensed retailers.
Other changes include restrictions on purchasing more than 100 tickets in a single transaction and limits on the number of ticket-printing terminals retailers can operate. Lawmakers also introduced safeguards designed to prevent players or groups from attempting to purchase nearly every possible winning combination in a drawing.
"These results show that strong contributions to Texas and strong safeguards can go hand in hand," said TDLR Executive Director Courtney Arbour.
Players collect $5.4 billion in prizes
Despite the changes, Texans continued buying lottery tickets.
Total ticket sales reached $7.865 billion, a decline of less than 1% from the previous fiscal year. Scratch-offs accounted for $6.242 billion in sales, while draw games generated $1.622 billion.
Players collected $5.4 billion in prizes, representing a record 68.7% of total sales. The lottery also reported that 97 players claimed prizes worth at least $1 million during the fiscal year.
Meanwhile, more than 19,000 Texas Lottery retailers earned over $426.5 million in commissions and bonuses.
With its first year under TDLR complete, the Texas Lottery heads into FY 2027 looking to build on its record veterans' funding while maintaining the stricter rules introduced during the transition.
Enjoy playing the Texas Lottery, and please remember to play responsibly.
