SB 28 aligns with a limited-government approach to gambling by preventing the Texas Lottery from expanding its operations online. The Texas Lottery, as a government entity, exists outside of the principles of free enterprise—it is a state-run monopoly that profits off gambling while using taxpayer-backed infrastructure. While Texas Policy Research generally opposes restrictions on private commerce, this bill does not target private businesses broadly—it restricts a state-sponsored gambling system from leveraging digital platforms to expand its reach.
However, SB 28 does not go far enough in addressing the underlying issue: the existence of the Texas Lottery itself. A more robust approach would either abolish the lottery entirely or privatize it, removing the government from the gambling industry altogether. Additionally, the criminal penalties for purchasing tickets online are unnecessary and could be better addressed through civil fines rather than misdemeanor charges.
Recommended Amendments:
- Remove Criminal Penalties for Individual Buyers – While restricting the sale of digital lottery tickets is within the bill's scope, individual consumers should not face misdemeanor charges simply for attempting to purchase a ticket online.
- Regulatory Framework for Third-Party Vendors – If the concern is fraud and large-scale ticket manipulation, the state could establish a licensed third-party vendor system instead of a complete ban.
- Clarify Intent to Limit Government’s Role in Gambling – A provision could be added acknowledging that this is a step toward restricting government involvement in gambling, with a long-term goal of reducing or eliminating the Texas Lottery altogether.
With these amendments, SB 28 would move beyond merely restricting digital lottery sales and instead serve as a meaningful step toward limiting state-sponsored gambling in Texas.
Political Landscape
SB 28 is not just a policy debate about lottery sales—it is part of a larger political battle over the role of government in gambling. Texas Lieutenant Governor Dan Patrick has made opposition to gambling expansion a legislative priority, and this bill aligns with his broader efforts to prevent the Texas Lottery from expanding into the digital space. His influence over the Texas Senate makes passage of this bill likely, particularly given that social conservatives and anti-gambling advocates within the Republican Party support restricting lottery access.
- Republican Party of Texas: The 2024 Republican Party of Texas platform opposes gambling expansion, which aligns with SB 28’s prohibition on digital lottery ticket sales. Many social conservatives within the party view gambling as harmful, particularly for low-income individuals, and see this bill as a way to prevent digital gambling from becoming more accessible. Fiscal conservatives may have concerns about the loss of revenue, but because the Texas Lottery is a state-run entity, many Republicans may not see this as a valid "free-market" issue.
- Libertarian Party of Texas: Libertarians generally believe that individuals should be free to engage in gambling without government interference, so they would likely oppose SB 28 as an unnecessary restriction on personal choice. Additionally, the bill criminalizes digital lottery purchases, which is another government overreach Libertarians would oppose. However, some Libertarians who oppose state-run monopolies may be open to this bill if it were framed as a step toward abolishing the Texas Lottery altogether.
- Texas Democratic Party: Texas Democrats generally support expanded revenue sources for public education, and because the Texas Lottery helps fund schools, they may oppose SB 28 for reducing lottery revenue. Additionally, Democrats may argue that restricting digital access disproportionately affects lower-income and rural residents, who may have less access to physical retailers. However, some progressive Democrats concerned about gambling addiction could support stricter regulations on online gambling.
