New Texas laws brings new management for Texas Lottery

AUSTIN, Texas - Administrators with the Texas Department of Licensing and Regulation have officially taken over management of the lottery commission.

The change comes after state lawmakers, earlier this year, considered ending the game.

Texas Lottery changes

As of September 1, management of the Texas Lottery has changed.

Oversight was transferred to the Texas Department of Licensing and Regulation during the Regular Session of the Texas Legislature. 

In a statement, TDLR hired a transition team and the "team will remain in place as TDLR completes additional tasks assigned by the Legislature, including reviewing each existing contract no later than December 1, 2025, and establishing a lottery advisory committee." 

The reboot is essentially a two-year reprieve. The lottery is up for review in 2027, and it could still face elimination when state lawmakers return to Austin. 

What they're saying:

Dawn Nettles, the head of a group called lottoreport.com, spoke about the change.

"Well, I am cautiously optimistic. I've met the people at TDLR, and they’re honest, they appear sincere and honest, and they really tried to learn," said Nettles.

An adjustment in the software for the Quick-Pick option is recommended by Nettles. She thinks that will increase confidence in the lottery, along with a broader revision.

"The Texas lottery went to three draws a week. They need to take it back to two draws a week, and they need to make a matrix change to it because Texas lost players over going to pick six numbers out of 54. If they were to take it back to say 6 and 50, which is where it was originally in two draws a week, they would see an increase in sales," said Nettles. 

A previous rule change raised questions about the integrity of the game. That brought about the push to abolish the lottery commission. With new leadership now in place, players like Fred Wells seem to be willing to give the game another chance.

"I look at it as a good thing, as long as the people who are with those resources do the things that they're supposed to with the resources," said Wells.

Dig deeper:

Political analyst Mark Jones with Rice University said basic math and the economic outlook, not the upcoming midterm elections, factored into keeping the lotto alive.

"Now working in the lottery's favor, though, is that it's very popular among many Texans, and it does provide substantial revenue for public schools and veterans. That would be a major hole that the legislature would have to make up if the lottery was to go away," said Jones.

TDLR could be in a caretaker-type situation.

"I think the TDLR is a good place for the lottery to be temporarily, but in the long-term, lawmakers will either have to look towards creating a new lottery commission, or if we do see a destination casino resorts approved in Texas in a future session, we could see a larger commission created to regulate the broader gambling industry, casinos, and as well as the lottery," said Jones. 

What's next:

The transition to the TDLR is not limited to the lottery. 

As of Monday, Sept. 1, the department will also manage charitable bingos in Texas.