On September 14, representatives from Texans for Fiscal Responsibility (TFR) appeared before the Texas Senate Committee on State Affairs to argue that the Texas Lottery cannot be reformed – it must be abolished. Their testimony came as the committee considered Senate Bill 3070 (89R), legislation that would dissolve the Texas Lottery Commission, move lottery operations to the Texas Department of Licensing and Regulation, order a study of the program, and set a sunset date for 2029.
Why reform falls short
TFR emphasized that simply changing the agency that runs the lottery does not address the core problem: a state‑run gambling enterprise that exploits taxpayers and families. They described the lottery as “taxation by exploitation,” noting that the Founders rejected taxation without representation and that today the state profits from an addictive product while advertising it with millions of taxpayer dollars.
The Texas Constitution largely prohibits gambling, yet a loophole created three decades ago allows the state to operate a monopoly lottery. TFR argued that this loophole remains and that the proposed reforms leave the product itself untouched.
Financial impact on Texans
In fiscal year 2025, Texans spent roughly $7.91 billion on lottery tickets. More than $2.5 billion of that money never returned to the players, equating to about $4,800 leaving Texas pockets every minute. Scratch‑off tickets alone accounted for about $688 million in sales. A minimum‑wage worker earning $7.25 per hour would need to work nearly two full days just to afford a single ticket, only to see those wages disappear in seconds.
Supporters often cite the lottery’s contribution to schools. In FY 2025, the lottery transferred about $1.77 billion to the Foundation School Fund – a modest portion of overall school funding that merely substitutes for general revenue rather than adding new classroom dollars. Billions continue to leave family budgets while the state claims a small stream for education.
Recent scandal underscores risks
The 2023 Lotto Texas drawing highlighted vulnerabilities in the system. An international syndicate allegedly purchased nearly every combination for a $95 million jackpot, with more than $25 million in tickets sold through just four retailers in the days before the draw. The winning ticket was paid to an entity called Rook TX, LLC. The episode prompted scrutiny of bulk buying, courier sales, and the then‑commission’s oversight.
SB 3070 later banned online and courier sales and capped transactions at 100 tickets. TDLR Executive Director Courtney Arbour told the committee that these limits make the 2023 scheme “no longer even feasible.” However, TFR noted that sales limits do not resolve the fundamental question of whether the state should be selling lottery tickets at all.
Addiction and public‑policy concerns
Gambling disorder is the only behavioral addiction classified in the same DSM‑5 chapter as alcohol and drug addiction. Psychiatrists identify core features such as craving, tolerance, failed attempts to quit, and continued use despite harm to family, work, and finances. The lottery’s design – instant results, “near‑wins,” and the chase – mirrors the mechanics of slot machines and fuels compulsive purchasing.
Because the state both regulates and profits from these destructive products, TFR argues there is an inherent conflict of interest. A government tasked with the general welfare should not also be the supplier of predatory gambling.
Call to action
TFR concluded that the Texas Lottery cannot be reformed; it must be abolished. They urged the 90th Legislature to end the program rather than spend another session tweaking its structure. The testimony, available online, reflects a broader push by the Texas Anti‑Predatory Gambling Alliance to protect families from state‑sanctioned gambling.
Original reporting: Texans for Fiscal Responsibility — read the source article.
