New Texas Lottery regulator gets a big confidence boost

Austin, Texas, where the TDLR is based
Credit: FilmRAW / Shutterstock

Two years of controversy and political scrutiny have not hurt the Texas Lottery’s popularity among the state’s residents, according to its latest financial results.

The lottery generated $7.8bn in ticket sales in 2026, a marginal 1% less than in 2025. This was divided between $6bn in scratchcard sales and $1.6bn in draw game sales.

The Texas Department of Licensing and Regulation (TDLR), which has been overseeing the Texas Lottery for just over a year, has attributed the results “strong player participation” across Texas retailers.

“These results show that strong contributions to Texas and strong safeguards can go hand in hand,” said Courtney Arbour, Executive Director of TDLR.

“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.”

The TDLR took charge of Texas Lottery regulation in 2025 as the culmination of a long-running legislative debate into how the lottery is regulated, with lottery couriers heavily in the spotlight.

This came about due to two instances – a 2022 bulk purchase incident which saw a group of non-state residents purchase an overwhelming number of winning ticket combinations via lottery couriers, claiming a $95m jackpot.

The second incident saw a woman win a $83.5m jackpot after purchasing a ticket through the Jackpocket courier app, with the ticket purchased and picked up at a retailer owned by DraftKings – the same company that owns Jackpocket.

The latter incident was ultimately resolved and the women received a payout. However, the Texas Lottery Commission’s (TLC) handling of the incident and the 2022 buyout prompted a lot of legislative scrutiny, including one congressman proposing the lottery be abolished as an extreme last resort.

Ultimately, the TDLR was chosen as the successor to the TLC as Texas Lottery regulator.

The new regulator has clearly taken a lot of confidence from 2026 stats. It has particularly focused on what it believes are “stronger oversight, new legislative safeguards, and increased funding for public education and veterans’ services”.

Regarding its fundraising priorities, the lottery contributed $1.85bn to education and veterans services in 2026. This included $1.82bn for the Foundations School Fund and $31.7m for the Fund for Veterans’ Assistance.

“That is what Texans should expect from their lottery: secure games, responsible management, and meaningful benefits for the state,” said Arbour.

“I’m proud of what we have accomplished in the first year and grateful to our retailers and players for their continued support.”