TDLR (Texas Department of Licensing and Regulation) takes over lottery operations amidst third-highest Powerball jackpot

AUSTIN (Nexstar) — As the Powerball jackpot approaches almost $2 billion, the third-highest jackpot in the game’s history, the Texas lottery is entering into a new era under a different agency.

Employees of the old Texas Lottery Commission (TLC) have transitioned fully into the Texas Department of Licensing and Regulation (TDLR) as of Sept. 1, according to Glenn Neal, the transition director for TDLR.

“We have had no notable problems with the with the transition to this point,” Neal said. He added there was no interruption to lottery services as Powerball fever grows hotter with a cash value estimated to be more than $770 million for the next Saturday drawing.

TDLR held its first public commissioner’s meeting since the transition on Thursday morning. Courtney Arbour, the executive director of TDLR, mentioned the jackpot passing the $1 billion threshold has started to create more interest in not only Powerball tickets, but also other games the Texas lottery provides.

“What serendipitous timing for us as the new agency,” Arbour said with a laugh. TDLR was tapped by the Texas legislature to take over the operation of lottery and charitable bingo after a contentious session regarding the TLC.

Lawmakers were unhappy in how the TLC was operating the lottery, allowing lottery courier services — which allow people to play the lottery game on their phone — to enter the state. The legislature passed Senate Bill 3070 which disbanded the TLC and moved operations under TDLR.

The legislation banned lottery courier services and requires players to purchase tickets and scratch-offs at a brick and mortar retailer with cash. Retailers are also not allowed to have more than five lottery terminals and cannot sell more than 100 tickets to a person in a single transaction.

“If you were one of the, let’s say, 10% of players who were using the couriers, you’ll now have to go in person. But for those who the 90% that were already going to a bricks and mortar retailer to buy tickets, they won’t notice any change at all,” Neal explained.

Rob Kohler, who works with the Christian Life Commission, the public policy arm of the Baptist General Convention of Texas, was present at the meeting Thursday. They were critical of the use of lottery courier services. So far, he is happy with the transition to TDLR and he hopes the new leadership will consider where the sales and revenue are coming from.

“We think that they will make a strong effort to look at areas in our communities that nobody benefits if the people that are predominantly buying our tickets are the same ones that are buying $5 worth of gas,” he explained.

Kohler also expressed concerns about the amount of unclaimed prizes. According to lottery data, the amount of unclaimed prizes in fiscal year 2024 reached $80,295,850, and so far this year it is at $60,680,742.

“Another way to put that is citizens of the state were tricked out of that $80 million so it’s issues like that, that we believe will get a fresh review,” Kohler said.

Neal explained the next phase of integration of the two agencies will be creating cohesive rules and procedures. “We’ll be looking at opportunities to use the best of both agencies to craft a sort of a new set of policies and procedures for one new department,” Neal said.

https://www.kxan.com/news/tdlr-takes-over-lottery-operations-amidst-third-highest-powerball-jackpot/