SB 3070 presents itself as a reform bill, seeking to abolish the Texas Lottery Commission and transfer its responsibilities to the Texas Department of Licensing and Regulation (TDLR). While it includes provisions for enhanced oversight, rulemaking controls, and a limited-scope Sunset review of the state lottery, the bill ultimately fails to address the core concern: the continued existence of the Texas Lottery itself. For lawmakers and constituents who believe the state should not be engaged in profiting from gambling, this bill does not go far enough—it restructures rather than repeals.
The central flaw of SB 3070 lies in its preservation of the lottery. Though the bill includes a 2027 Sunset clause, that mechanism does not ensure abolition. Instead, it merely opens a path for the legislature to revisit the issue in a future session, at which point the political will to end the lottery may not exist. The clause allows the lottery to continue in full operation for at least two more years and effectively grants it a lifeline. For those who view state-sponsored gambling as unethical, regressive, and incompatible with responsible governance, a deferred decision is not a sufficient response.
Moreover, transferring regulatory duties to TDLR—an agency known for competence and efficiency—may inadvertently strengthen the legitimacy and institutional permanence of the lottery. Instead of dismantling a system riddled with public trust issues and questionable revenue dependencies, this bill risks giving it a bureaucratic upgrade. This administrative shift may improve oversight, but it also makes the lottery more politically defensible, thereby frustrating efforts toward future repeal.
Another concern is the fiscal dependence the state has developed on lottery proceeds, especially for education funding. By continuing this model, the bill fails to challenge the ethics of tying school finance to voluntary taxation through gambling. SB 3070 does not offer a replacement or even a legislative direction for how to transition away from this dependency. For those committed to sustainable and principled public finance, that omission is significant.
In summary, while SB 3070 addresses some legitimate regulatory concerns and takes steps to curtail certain practices such as online sales and bulk ticket purchases, its most important effect is to delay a final judgment on the lottery’s future. By maintaining the system it purports to reform, the bill does not meet the expectations of those who believe the Texas Lottery should be abolished. For that reason, Texas Policy Research recommends that lawmakers vote NO on SB 3070.
- Individual Liberty: Although the bill increases transparency and tightens restrictions on how and where lottery tickets can be sold (e.g., banning online and courier-based transactions), it preserves a state-sponsored gambling system that many view as exploitative. The lottery disproportionately impacts low-income and vulnerable individuals by promoting false hope and addictive behaviors under the imprimatur of state legitimacy. Thus, while it arguably protects individuals from some abuses, the continued existence of the lottery undermines individual liberty by perpetuating state-facilitated financial harm.
- Personal Responsibility: The state lottery undermines personal responsibility by blurring the line between entertainment and state-promoted vice. By operating a lottery, the state incentivizes irrational financial decisions and cultivates dependency on chance over work, thrift, or investment. The bill does nothing to reverse this dynamic—it simply transfers management to a more competent agency, arguably making the system more efficient at delivering an irresponsible message. A bill aligned with personal responsibility would move to eliminate the program, not preserve and reframe it.
- Free Enterprise: The lottery is a government-run monopoly in the gambling sector. The bill does not diminish that monopoly; in fact, by maintaining the current structure under new management, it entrenches the state’s privileged position. Moreover, it imposes new criminal penalties and restrictions on third-party sales platforms, such as online courier services, that could otherwise compete or innovate in the market. While justified by regulatory concerns, these restrictions further insulate the state’s monopoly from any form of free-market challenge.
- Private Property Rights: The bill does not directly affect private property rights. It does regulate how licensed retailers can conduct their business (e.g., number of vending machines, ticket sale limits per transaction), but this is within the expected scope of regulatory oversight for state-licensed enterprises. However, the broader ethical concern remains that the state uses its monopoly to influence individual financial behavior in ways that can lead to loss of property or wealth among economically vulnerable citizens.
- Limited Government: This is the area where the bill appears most superficially aligned, but ultimately falls short. Yes, it eliminates the Texas Lottery Commission, reducing the number of agencies, and transfers authority to TDLR. It also includes Sunset provisions and mandates annual audits, improving accountability. However, by preserving the lottery itself, the bill continues government involvement in a non-essential, ethically fraught activity. A truly limited-government approach would be to end the state’s role in gambling altogether. This bill instead shores up that role under more efficient management, which is contrary to the principle of limiting government to core functions.
