Texas Lottery Commission Under Scrutiny as New Legislation Emerges
As legislation progresses through both chambers of the Texas legislature to regulate the state lottery, the implications of modifying or potentially eliminating the lottery are being closely considered by lawmakers and stakeholders.
Increased Scrutiny of the Lottery Commission
The Texas Lottery Commission has found itself under heightened scrutiny recently, particularly due to allegations involving a bulk purchase in 2023 and the use of couriers connected to notable lottery wins. These developments have catalyzed state investigations and sparked calls for the outright abolition of the lottery.
Focus on Charitable Bingo Regulation
During a Senate State Affairs committee hearing on a recent Monday, attention shifted from the lottery to the less-discussed area of charitable bingo, which is also regulated by the lottery commission. The committee evaluated Senate Bill 1721, proposed by Sen. Mayes Middleton, a Republican from Galveston. This bill aims to transfer the oversight of bingo operations to the Texas Department of Licensing and Regulation, a decision attributed to growing controversies surrounding the lottery commission.
“Members of the lottery commission and their many documented failures have put us in this position, unfortunately,” Middleton remarked during the hearing.
Legislative Landscape and Concerns
Senate Bill 1721 is among 15 proposed pieces of legislation seeking to reform the lottery’s structure, as the commission is currently undergoing a sunset review requiring legislative approval for its continuation. Notable among these bills is Senate Bill 28, which passed unanimously in the Senate and seeks to ban lottery couriers, third-party services that facilitate online ticket sales, which some lawmakers claim operate in a legal gray area or may already be violating state law.
Concerns from Charitable Bing Advocates
At the hearing, some advocates voiced strong support for the lottery while expressing fears that the removal of bingo from the lottery commission’s purview could lead to the lottery’s eventual dissolution. Mitch Fuller, legislative director for the Texas Veterans of Foreign Wars, stated, “Our concern is real, that this is the first chess piece on the board to ultimately get rid of the lottery — the VFW would oppose that.” The Texas VFW, as the largest holder of bingo licenses in Texas, has contributed over $2 million to local charities through bingo, and Fuller emphasized the significance of the lottery’s support for veterans, with the commission contributing more than $262 million to veterans’ programs since 2009.
Balancing Interests Amidst Controversy
Senator Bob Hall, who authored Senate Bill 28, clarified that the issues within the lottery commission should not reflect adversely on employees managing charitable bingo operations. However, he asserted that any negative consequences resulting from potential lottery dissolution were necessary to safeguard Texans, thus asserting the necessity for the transfer of bingo regulation, “no matter what happens.”
He noted, “Almost all crimes that are committed have collateral damage.”
Regional and National Implications
The situation concerning lottery couriers in Texas has also drawn national attention. For instance, New Mexico’s Attorney General issued an opinion asserting that Jackpocket, the country’s largest lottery courier, likely violates state laws following the passage of SB 28. Additionally, officials from the New York Lottery indicated intentions to re-evaluate courier practices to ensure consistent regulatory measures.
Next Steps for the Lottery Commission
Amid ongoing allegations, the Texas Lottery Commission is taking steps to restrict couriers after years of stating they had no jurisdiction over them. The commission plans to establish regulations that would lead to the revocation of licenses for any lottery retailers collaborating with courier services. Proposed regulations have been drafted, with a public hearing set for April 3.
Testing the Future of Lottery Operations
Despite mixed feelings regarding the proposed regulatory changes, advocates for bingo have publicly supported key figures within the lottery commission for their dedication to charitable bingo operations. “We will not turn our backs on Chairman [Robert] Rivera, Commissioner [Lyons] Fields, or the other commissioners,” Bresnan stated.
A separate bill, introduced by Hall in March, aims to abolish the state lottery entirely. While it is currently under consideration, it has not yet been scheduled for a hearing. This proposal stands in contrast to House Bill 1505 and Senate Bill 2402, which aim to maintain the lottery commission while refining oversight and training protocols.
Uncertainty Surrounds Future Operations
Before making definitive decisions regarding SB 1721, stakeholders involved with bingo and the lottery articulated their uncertainty about the lottery’s future. As Steve Bresnen, an advocate from the Bingo Interest Group, stated, “Our neutrality on [SB 1721] is driven by the fact that we don’t know what’s going to happen with the lottery. Some folks would be happy to see the lottery go. I don’t know what other options there might be.”
