TexasSB 307089th Legislature Regular SessionSenateWALLET

Relating to the abolishment of the Texas Lottery Commission and the transfer of the administration of the state lottery and the licensing and regulation of charitable bingo to the Texas Commission of Licensing and Regulation; creating criminal offenses.

Sponsored By: Charlie Geren, Bob Hall (Republican)

Signed by Governor

Amusements, Games, SportsCourts--DistrictCrimes--MiscellaneousOpen MeetingsState Agencies, Boards & CommissionsSunset--Recommended ReviewsBINGOCOMPUTERS & SOFTWAREEMAIL & ELECTRONIC COMMUNICATIONSGAMBLINGLOTTERIESRECORDS MANAGEMENTAUDITOR, STATEFINANCIAL CRIMES INTELLIGENCE CENTERLICENSING & REGULATION, TEXAS COMMISSION OFLICENSING & REGULATION, TEXAS DEPARTMENT OFLOTTERY COMMISSION, TEXASPUBLIC SAFETY, DEPARTMENT OFSUNSET ADVISORY COMMISSION

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Bill Overview

Analyzed Economic Effects

18 provisions identified: 4 benefits, 8 costs, 6 mixed.

Lottery buyers face in-person purchase limits

You must buy Texas lottery tickets in person at licensed sales locations during normal business hours. Buying or ordering tickets by phone, internet application, or mobile application is a Class A misdemeanor. Paid helpers also cannot use those methods to accept orders, sell tickets, or arrange purchases; enforcement rules cover prohibited assistance. Sellers cannot sell more than 100 tickets to one person in one transaction; violations are Class B misdemeanors. That cap does not set a total purchase limit across separate transactions.

Lottery sellers face checks and scan protections

Lottery sellers must check every buyer’s age using the process set by commission rule; violations are Class B misdemeanors. Selling or offering tickets to someone under 18 creates criminal liability when sellers act with criminal negligence and know the buyer’s age. Agents have protection from agency discipline when an employee scans a driver’s license, commercial driver’s license, or personal identification certificate. The scan must show a valid document and a buyer age of at least 18 on the purchase date. This protection does not change the separate criminal-liability rule.

Bingo charities can retain more operating money

The ordinary bingo operating-capital ceiling rises from $50,000 to $100,000 per organization, or $100,000 per unit member. Retained money still cannot exceed average quarterly bingo expenses from the prior license period, excluding prizes paid. The commission must allow higher limits for organizations operating less than one year or closed at least six months. Higher limits also apply when events beyond an organization’s control require more capital. A credible business plan also qualifies when the increase will reasonably help carry out that plan.

Bingo groups gain equipment return options

Licensed bingo distributors can accept returns of defective, unordered, or excess equipment and supplies they delivered to licensed organizations. Both parties must keep return records and share copies; the law does not guarantee a refund. Licensed bingo organizations can also move card-minding devices to another licensed organization’s premises when both agree.

Bingo guidance requests get response deadlines

The commission must answer bingo advisory-opinion requests by its second meeting after receipt or day 60, whichever is later. If facts are missing, it must request more information within 10 days after receiving the request. The same response timetable then runs from receipt of the additional information. A response deadline does not guarantee approval.

Lottery operators gain contract continuity protections

By September 1, 2026, the licensing department must extend the existing lottery operations and services contract. The extension cannot exceed two years beyond its current expiration date. Lottery operator contracts must also allow operators to end them without penalty if the licensing department is abolished.

Lottery insiders and relatives cannot play

People directly supplying lottery goods or services under contract cannot buy tickets or receive prizes or prize shares. The ban also covers lottery operator members, officers, and employees, plus licensing department officers and employees. Their spouse, child, sibling, or parent is also barred when living in the same household. Violations are Class A misdemeanors.

Lottery officials face lasting gift bans

Licensing commissioners, the executive director, and department employees cannot knowingly accept gifts or political contributions from covered lottery-connected donors. Covered donors also cannot give them, and both bans last two years after the official or employee leaves. Donors include people with significant lottery financial interests, their first-degree relatives, and political committees they control. The ban also covers owners of more than 10% of an entity with such interests and winners of prizes exceeding $600 within the past two years. Violations are Class A misdemeanors.

Lottery winners need verified tax forms

Lottery winners must submit any required Internal Revenue Service form before prize payment can be authorized. The licensing department must independently check the information on that form before authorization. The law gives no deadline for completing that check.

Licensing officials face stricter hiring checks

The department must investigate and obtain criminal histories for prospective executive directors and designated lottery or bingo job candidates. Covered candidates will handle sensitive data or mainly administer lottery or bingo laws; specified current employees with sensitive-data access also require investigation. The director can refuse to consider workers or applicants who fail to provide requested complete, readable fingerprints for required checks. The governor must investigate intended commission appointees and can obtain their criminal histories. Commission members must be U.S. citizens with no felony conviction or conviction for a crime involving moral turpitude.

Lottery retailers face ticket equipment limits

The licensing department generally cannot provide more than five ticket-printing devices to a licensed lottery sales location. Covered devices include lottery vending machines, computer terminals, and other equipment dedicated to printing tickets. Commission rules can allow an exception.

Texas lottery faces a 2029 expiration

The law sets September 1, 2029, as the Texas lottery’s expiration date unless the state continues it. Without continuation, the lottery is abolished and its governing chapter expires. Players, retailers, operators, and vendors then lose access to the state lottery program.

Bingo license holders face risk-based audits

The commission must work with bingo advisers to set and use financial accountability standards for premises inspections. It must also establish an audit policy. Each year, the department must identify high-risk license holders using risk procedures that include their compliance history. It must update an audit plan with schedules, update procedures, and completion dates, and give the commission a copy. Each audit must finish within five years after the license holder is identified as an audit candidate.

Longtime bingo lessors face renewal limits

Commercial bingo lessors licensed on June 10, 1989, can use the continuous-license renewal path if otherwise eligible. Their licenses must have stayed continuously in effect since that date. The commission can place these licenses on hold for up to 10 years. When the hold ends, the commission must remove it, and this special renewal path no longer applies. Licenses already on hold before the law’s effective date can remain held no more than 10 years from that date.

Bingo advisers gain voice but no pay

The commission must appoint a nine-member bingo advisory committee representing the public, bingo charities, and commercial and charity lessors. It advises on rules and industry needs, reports developments, and meets quarterly or when requested. The commission cannot restrict which bingo topics the committee discusses, but need not act on its advice. Members receive no pay or reimbursement for committee expenses.

Public lottery panel serves without pay

The commission must create a lottery advisory committee to advise on proposed rules. Membership balances the public, sales agents, differing lottery viewpoints, and groups linked to or benefiting from lottery contributions. It also includes members experienced in lottery law enforcement, legal matters, and finance. Meetings are public and occur quarterly or when requested. Members receive no pay or expense reimbursement.

Lottery and bingo gain security oversight

The licensing department must maintain a security office for lottery and charitable bingo matters. The office can work with the financial crimes intelligence center on investigations, guidance, and relevant information. The department can also obtain criminal-history records for lottery and bingo license applicants and holders.

Lottery and bingo move to licensing agencies

Beginning September 1, 2025, lottery and charitable bingo duties move to Texas licensing agencies, replacing the Texas Lottery Commission. Existing rules, licenses, complaints, investigations, and cases continue under the new agencies. Manufacturers must update qualifying bingo equipment bonds to name the Texas Department of Licensing and Regulation as payee. This covers bonds filed before September 1, 2025, and still active on the law’s effective date. The bond update deadline is December 1, 2025; the law sets no new bond amount.

Sponsors & Cosponsors

Sponsors

  • Charlie Geren

    House

  • Bob Hall

    Republican • Senate

Cosponsors

  • Carol Alvarado

    Democratic • Senate

  • Paul Bettencourt

    Republican • Senate

  • Donna Campbell

    Republican • Senate

  • Creighton

    Affiliation unavailable

  • Phil King

    Republican • Senate

  • Lois Kolkhorst

    Republican • Senate

  • José Menéndez

    Democratic • Senate

  • Mayes Middleton

    Republican • Senate

  • Tan Parker

    Republican • Senate

  • Angela Paxton

    Republican • Senate

  • Kevin Sparks

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 539 • No: 195

Senate vote • 5/30/2025

Record vote

Yes: 31 • No: 0

House vote • 5/26/2025

Record vote

Yes: 112 • No: 27

House vote • 5/25/2025

Record vote

Yes: 110 • No: 29

House vote • 5/25/2025

Record vote

Yes: 91 • No: 44

House vote • 5/25/2025

Record vote

Yes: 104 • No: 33

House vote • 5/25/2025

Record vote

Yes: 71 • No: 58

Senate vote • 5/15/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/15/2025

Record vote

Yes: 0 • No: 0

Senate vote • Unknown

Committee vote: State Affairs

Yes: 10 • No: 0

House vote • Unknown

Committee vote: State Affairs

Yes: 10 • No: 4

Bill Text

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