(Texas Scorecard) – As the Texas House prepares to debate its version of the state budget later this week, conservative lawmakers are lining up amendments that would take a scalpel to the Texas Lottery Commission’s funding. They propose redirecting millions currently used to promote and operate the lottery to support taxpayer priorities like property tax relief instead.
The proposals come as the Lottery Commission faces increasing scrutiny. In recent months, the agency has come under fire for allowing third-party websites to sell lottery tickets online—despite concerns that the practice violates state law and opens the door to unregulated gambling. Lawmakers and watchdogs have criticized the Commission for failing to act, accusing it of turning a blind eye while private companies profit off a state-run system with little oversight.
Under the House’s proposed budget, the Texas Lottery Commission is slated to receive more than $667 million over the next two years, with the bulk of that money going toward vendor contracts, ticket printing, advertising, and retailer commissions. Among the largest line items are: $311 million for operator contracts, $169 million for scratch ticket production, and $20 million for marketing and promotions.
While the Texas Lottery Commission faces possible closure this year as part of the state’s Sunset review process, some lawmakers are already using the budget to rein in the agency and redirect its funding.
State Rep. Briscoe Cain (R–Deer Park) has authored multiple amendments targeting the Commission’s promotional and operational spending. Among them are: cutting millions from lottery product development and advertising contracts, and instead funneling those dollars into the Texas Education Agency to fund school district property tax compression.
Cain also filed a sweeping amendment that would reduce more than $11 billion from general revenue across the budget and use those funds to drive down local school property taxes—the largest tax relief amendment filed this session, partially funded by cuts to lottery spending.
State Rep. Ben Bumgarner (R–Flower Mound) is taking a similar approach, proposing to slash $75 million from the agency’s scratch ticket contracts and repurpose those funds to construct a new state mental health hospital in Denton County. Another amendment he filed would cut $2 million from lottery promotion efforts and redirect it to local nonprofit mental health providers serving vulnerable populations.
State Rep. Tony Tinderholt (R–Arlington) filed an amendment that redirects lottery dollars to fund training for armed school marshals.
State Rep. Nate Schatzline (R–Fort Worth) proposed modifying the Lottery Commission’s budget language to ensure that any excess revenue goes directly to the state’s Property Tax Relief Fund.
An amendment by State Rep. Steve Toth (R–Conroe) redirects $300,000 from the Texas Lottery Commission to reimburse Meals on Wheels services in Montgomery County.
State Rep. Tom Oliverson (R–Cypress) authored an amendment that would cut $8 million from various lottery operations to fund youth detox centers and Medicaid nutrition reimbursements.
State Rep. Terri Leo-Wilson (R–Galveston) filed amendments to divert lottery funds to a Galveston Juneteenth Museum and upgrades for the Texas A&M Maritime Academy.
While most of the conservative efforts are designed to cut waste and redirect funds to core services, some Democrat-backed amendments also target the Lottery Commission—but aim to fund different priorities.
State Rep. Trey Martinez Fischer (D–San Antonio) proposes cutting $10 million from lottery promotions to move it to the University of Texas Health Science Center at Tyler.
State Rep. Jolanda Jones (D–Houston), meanwhile, filed a proposal to cut $1 million from the lottery’s promotional budget and shift that funding toward grants for nonprofit construction projects.
The budget, Senate Bill 1, is slated to be voted on in the Texas House on Thursday, April 10.