Texas Abolishes Lottery Commission

Key Takeaways

• The Texas Lottery Commission will be abolished effective September 1, 2025, with operations transferring to the Texas Department of Licensing and Regulation .
• This restructuring follows legislative concerns over multimillion-dollar jackpot wins in 2023 and 2024 that prompted investigations and agency resignations .
• The move aims to enhance oversight and prohibit online ticket sales, addressing past operational issues.

The Texas Lottery Commission, established in 1993 to oversee one of the state's primary legal gambling avenues, ceases to exist as of September 1, 2025. In its place, the Texas Department of Licensing and Regulation (TDLR) assumes responsibility for lottery operations, marking a significant overhaul in the state's gaming administration. This transition stems from Senate Bill 1659, passed during the 2023 legislative session, which sought to address mounting concerns about the commission's handling of large jackpots and operational transparency .

The decision follows scrutiny over two notable multimillion-dollar prizes won in 2023 and 2024, which led to internal investigations and the resignation of key officials. Lawmakers expressed concerns about potential vulnerabilities in the system, including the role of lottery couriers and online sales platforms. As part of the reform, the new law explicitly bans online ticket sales, aiming to curb unauthorized third-party involvement and ensure tighter control over revenue streams that significantly contribute to public education funding in Texas.

Elsewhere in the U .S ., the Massachusetts State Lottery Commission advanced toward digital expansion by approving a five-year contract on August 26, 2025, paving the way for online ticket sales. This development positions Massachusetts among states adapting to consumer preferences for digital access, potentially boosting revenue amid declining in-person purchases. The contract details emphasize the use of secure platforms to maintain integrity and protect players.

On the international front, Norway's application deadline for large lottery licenses arrived on September 1, 2025, as part of ongoing regulatory updates to the country's gambling framework. This deadline, highlighted in industry compliance reports, underscores efforts to standardize operations for major lottery providers, ensuring compliance with national standards on responsible gaming and revenue allocation.

In Argentina, the Santa Cruz Lottery completed a program focused on preventing online gambling issues, announced on September 1, 2025. This initiative, involving training and awareness campaigns, reflects the growing emphasis on player safety in Latin American markets, where lotteries fund social programs.

Software providers also made strides, with Aristocrat Interactive announcing an expanded agreement on August 26, 2025, to bolster its presence in the U.S.i Lottery sector. This deal enhances digital offerings for state lotteries, integrating advanced technology for draw games and instant wins, aligning with the industry's shift toward hybrid models .

In Norway, revelations about a decade-long error in Norsk Tipping's lottery system have surfaced recently, affecting draw fairness and eroding public trust. The issue, which involved miscalculated odds, prompted regulatory reviews and calls for enhanced auditing protocols among European operators.

These developments highlight a period of transition for the lottery sector, driven by regulatory pressures and technological advancements.

Sources

• https://www .texastribune .org/2025/08/29/texas-lottery-department-licensing-regulation/
• https://www .vixio .com/blog/gambling-regulatory-deadlines-to-watch-in-september-2025