Texas Lottery Contributions To State Rise In First Fiscal Year Under New Regulator

The first fiscal year with the Texas Department of Licensing and Regulation (TDLR) overseeing lottery play instead of the Texas Lottery Commission (TLC) is complete, and the numbers suggest it’s been a smooth and successful transition.

A Texas Lottery release on Wednesday highlighted strong financials regarding contributions to the funds the lottery benefits in the state, including $1.82 billion for the Foundation School Fund and $31.7 million for the Fund for Veterans’ Assistance. Both totals were an increase over FY 2025 — and the funding to assist veterans is in fact a new record. The total of $1.85 billion to beneficiaries is the fifth highest in the history of the Texas Lottery.

“These results show that strong contributions to Texas and strong safeguards can go hand in hand,” TDLR Executive Director Courtney Arbour said in the release. “In our first year overseeing the Texas Lottery, we carried out the legislature’s direction to strengthen integrity and accountability while increasing funding for public education and veterans’ services. That is what Texans should expect from their lottery: secure games, responsible management, and meaningful benefits for the state. I’m proud [of] what we have accomplished in the first year and grateful to our retailers and players for their continued support.” 

Total lottery sales for the fiscal year were down ever so slightly, coming in at $7.865 billion, a decrease of a little under 1%.

Players in the state collected $5.4 billion in total prizes, meaning an overall return-to-player rate of 68.7%. Retailers earned a total of $426.5 million in commissions and bonuses — an average of about $22,400 for each of the 19,000-plus retail outlets that sell Texas Lottery products.

Big bucks, big backlash

In June 2025, Gov. Greg Abbott signed a bill abolishing the TLC, which was introduced by state Sen. Bob Hall as a reaction to a pair of Lotto Texas jackpot controversies.

The first centered around a $95 million prize won in 2023 by an investment firm called Rook TX, which allegedly received special arrangements from the TLC in its efforts to buy every possible number combination.

That controversy is not over for former Texas Lottery Executive Director Gary Grief, who faces a felony charge for his involvement and appeared in court last Friday to have a judge set his bond at $10,000. Grief continues to deny any wrongdoing.

The second jackpot in question was never actually revealed to involve anything out of the ordinary, but that didn’t stop Lt. Gov. Dan Patrick from opening an investigation into the purchase of the $83.5 million winning ticket, bought via the DraftKings-owned Jackpocket lottery courier app. After a lengthy delay, winner Kristen Moriarty ultimately received her winnings, but the state banned the use of courier companies going forward.

The TDLR officially took over regulation of the lottery on Sept. 1, 2025.