Published: December 9, 2024

Texas lawmakers are taking aim at people who play the lottery by purchasing tickets online from businesses that will go buy tickets for people who live out of state

A number of bills target the Texas Lottery, including a huge loophole An out of state group won $95 million using the loophole.

Texas lawmakers are taking aim at people who play the lottery by purchasing tickets online from businesses that will go buy tickets for people who live out of state. The loophole has allowed for massive jackpots, including a $95 million win, to be claimed by people who do not live in the state of Texas. 

The Sunset Advisory Commission, a state commission responsible for reviewing government agencies and programs, released a report in July condemning the business model.  The commission took aim at "courier companies" that were skirting Texas law, referencing the $95 million win in 2023. A company called Hooked on Montana operating out of North Texas sold $11 million of lottery tickets to Rook Texas LLP out of New Jersey. One of those tickets scored the $95 million jackpot. 

SB 79 and its companion HB 389 want to close the loophole and make it illegal for someone to purchase lottery tickets via an app or online, including purchasing tickets for compensation. The bill also wants to make it illegal to "for another person to purchase a ticket on behalf of a person playing a lottery game," including accepting orders for tickets, selling tickets to other people and also to arrange to purchase on behalf of someone playing the lottery. 

The bill was introduced to the Senate on November 12. If it passes, it could go into effect as soon as September 1, 2025, according to the filing. The bill was filed by Senators Mayes MiddletonBob Hall and Charles Perry

A number of other bills related to the lottery that were prefiled ahead of the January 14, 2025, start of the 89th Texas legislative session. 

San Antonio area Senator José Menéndez filed a bill on November 12 to create a new lottery game that aims to benefit the child-care services program administered by the Texas Workforce Commission.

Rep. Salman Bhojani introduced an amendment to the rules in HB 1067 around how compensation is paid to sales agents for state lottery ticket sales to increase the minimum compensation from 5 percent of retail price to no less than 7.5 percent of the price. 

Rep. Cody Thane introduced HB 839 to amend the rules around "the percentage of state lottery money paid as prizes to winning ticket holders," adding a provision that states "the payment of prizes in a fiscal biennium may not exceed an amount equal to 40 percent of the gross revenue accruing from the sale of tickets in that biennium." Biennium in this context means over the course of two years. 

https://www.mysanantonio.com/business/article/texas-lottery-online-sales-ban-19953757.php

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