SB 1990

relating to the operation and administration of the state lottery
and repeal of the prohibition on imposing taxes on lottery tickets
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 466.015(c), Government Code, is amended
(c)  The commission may adopt rules governing the
establishment and operation of the lottery, including rules
(1)  the type of lottery games to be conducted;
(2)  subject to Section 466.251(d), the price of each
(3)  the number of winning tickets and amount of the
prize paid on each winning ticket;
(4)  the frequency of the drawing or selection of a
(5)  the number and types of locations at which a ticket
(6)  the method to be used in selling a ticket;
(7)  the use of vending machines or electronic or
mechanical devices of any kind, other than machines or devices that
dispense currency or coins as prizes;
(8)  the manner of paying a prize to the holder of a
(9)  the investigation of possible violations of this
chapter or any rule adopted under this chapter;
(10)  the means of advertising to be used for the
(11)  the qualifications of vendors of lottery services
(12)  the confidentiality of information relating to
the operation of the lottery, including:
(B)  security measures, systems, or procedures;
(D)  bids or other information regarding the
commission's contracts, if disclosure of the information would
impair the commission's ability to contract for facilities, goods,
or services on terms favorable to the commission;
(E)  personnel information unrelated to
compensation, duties, qualifications, or responsibilities; and
(F)  information obtained by commission security
(13)  the development and availability of a model
agreement governing the division of a prize among multiple
purchasers of a winning ticket purchased through a group purchase
(14)  the criteria to be used in evaluating bids for
contracts for lottery facilities, goods, and services; or
(15)  any other matter necessary or desirable as
determined by the commission, to promote and ensure:
(A)  the integrity, security, honesty, and
fairness of the operation and administration of the lottery; and
(B)  the convenience of players and holders of
SECTION 2.  Section 466.027(b), Government Code, is amended
(1)  determine the ticket price subject to Section
466.251(d), payout amounts, and manner in which the game is
(2)  make tickets to the game available for sale
continuously to the extent practicable; and
(3)  change the design or theme of the game regularly to
ensure that the game remains competitive with other instant-ticket
lottery games offered by the commission.
SECTION 3.  Section 466.155(a), Government Code, is amended
(a)  After a hearing, the director shall deny an application
for a license or the commission shall suspend or revoke a license if
the director or commission, as applicable, finds that the applicant
(A)  has been convicted of a felony, criminal
fraud, gambling or a gambling-related offense, or a misdemeanor
involving moral turpitude, if less than 10 years has elapsed since
the termination of the sentence, parole, mandatory supervision, or
probation served for the offense;
(B)  is or has been a professional gambler;
(C)  is married to an individual:
(i)  described in Paragraph (A) or (B); or
(ii)  who is currently delinquent in the
(D)  is an officer or employee of the commission
(E)  is a spouse, child, brother, sister, or
parent residing as a member of the same household in the principal
place of residence of a person described by Paragraph (D);
(2)  is not an individual, and an individual described
(A)  is an officer or director of the applicant or
(B)  holds more than 10 percent of the stock in the
(C)  holds an equitable interest greater than 10
percent in the applicant or sales agent;
(D)  is a creditor of the applicant or sales agent
who holds more than 10 percent of the applicant's or sales agent's
(E)  is the owner or lessee of a business that the
applicant or sales agent conducts or through which the applicant
will conduct a ticket sales agency;
(F)  shares or will share in the profits, other
than stock dividends, of the applicant or sales agent; or
(G)  participates in managing the affairs of the
(3)  has been finally determined to be delinquent in
the payment of a tax or other money collected by the comptroller,
the Texas Workforce Commission, or the Texas Alcoholic Beverage
(4)  is a person whose location for the sales agency is:
(A)  a location licensed for games of bingo under
Chapter 2001, Occupations Code;
(ii)  a political subdivision of this state
and on which is located a public primary or secondary school, an
institution of higher education, or an agency of the state; [or]
(C)  a location for which a person holds a wine and
malt beverage retailer's permit, mixed beverage permit, mixed
beverage permit with a retailer late hours certificate, private
club registration permit, or private club registration permit with
a retailer late hours certificate issued under Chapter 25, 28, 29,
or 32, Alcoholic Beverage Code, other than a location for which a
person holds a wine and malt beverage retailer's permit issued
under Chapter 25, Alcoholic Beverage Code, that derives less than
30 percent of the location's gross receipts from the sale or service
(D)  a location within 800 feet of the campus of a
church or a public, private, or open-enrollment charter school; or
(5)  has violated this chapter or a rule adopted under
SECTION 4.  Section 466.251, Government Code, is amended by
adding Subsection (d) to read as follows:
(d)  The commission or lottery operator may not set a retail
price for an instant-ticket lottery game in an amount greater than
SECTION 5.  Subchapter F, Chapter 266, Government Code, is
amended by adding Section 466.257 to read as follows:
Sec. 466.257.  PROHIBITED VENDING MACHINE SALES.  A ticket
may not be sold through a ticket dispensing machine that dispenses
lottery tickets without the assistance of a sales agent's
SECTION 6.  Section 466.355, Government Code, is amended by
adding Subsection (d) to read as follows:
(d)  Notwithstanding any other provision of this section,
not less than 40 percent of the total revenue received from the sale
of tickets and license and application fees under this chapter
shall be deposited to the credit of:
(1)  the foundation school fund; and
(2)  the fund for veterans' assistance established by
SECTION 7.  Section 466.004, Government Code, is repealed.
SECTION 8.  As soon as practicable after the effective date
of this Act, the Texas Lottery Commission shall adopt, modify, or
repeal rules as necessary to implement the changes in law made by
SECTION 9.  Section 466.155(a), Government Code, as amended
by this Act, applies only to a sales agent license issued or renewed
SECTION 10.  Section 466.355, Government Code, as amended by
this Act, applies only to a transfer from the state lottery account
made on or after the effective date of this Act.
SECTION 11.  This Act takes effect September 1, 2025.