The Texas Lottery Commission is the operator of a government-run lottery available throughout Texas, which sells lottery tickets and awards monetary prizes on the basis of random chance.
Texas voters approved the creation of a state lottery by constitutional amendment in 1991. The Lottery Commission was formed by legislation in 1993, taking over management of the lottery from the Texas Comptroller of Public Accounts.
Headquartered in downtown Austin, the commission uses most of its revenues to pay out prizes, while also generating funds for the public school system.
Prior to 1997, the proceeds were allocated to the General Revenue Fund. In more recent years, about 65% of revenues go toward paying prizes, 3.6% is used for administrative costs, 5.4% is paid to retailers, and about 26% is paid into the Foundation School Fund.
The Lottery Commission also has oversight of charitable bingo games.
The Texas Legislature considered ending the state lottery commission in 2013. In April that year the House of Representatives voted not to recommission the agency, before reversing course.
By law, the lottery commission is limited in the type of advertisement that it uses to sell lottery tickets. It cannot “depict or represent a change of lifestyle by presenting any Texas Lottery game as a potential means of relieving any person’s financial or personal difficulty by emphasizing wins are a guarantee or substitute for employment.”
The advertising also may not “portray product abuse, excessive play or preoccupation with gambling by glamorizing frequent or excessive play.”
This article is part of Texapedia, the Encyclopedia of Texas Government. Information in this online encyclopedia is drawn from credible sources, including state laws, agency publications, reference books, historical works, and the Texas Constitution.
