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Efforts to expand gambling in Texas have hit another wall. A new Senate vote could lead to the end of the state lottery, raising fresh doubts about the future of any form of gaming in the Lone Star State.
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The Texas Senate’s unanimous vote to eliminate the Texas Lottery Commission and shift oversight to another agency has stirred up new uncertainty. If the bill clears the House, state officials would gain the authority to shut down the lottery entirely by 2027.
The Texas Lottery has generated over $35 billion for education and veteran programs since 1992. It currently ranks as the fourth-largest in the country by revenue. Yet, a recent scandal involving the use of Jackpocket—a courier service owned by DraftKings—to game the lottery system has sparked backlash. Following the incident, Jackpocket exited the market, and the lottery director resigned.
Gambling laws in Texas have remained restrictive, even as the rest of the country embraces sports betting and casino expansion. While 38 states have legalized sports betting since 2018, the Texas Senate has repeatedly blocked related bills. The House showed interest, passing a sportsbook bill in 2023, but Lt. Gov. Dan Patrick prevented it from moving forward. Patrick has stated that unless a bill gains solid GOP caucus support, it will not be brought up for a vote.
Las Vegas Sands has been lobbying for a casino resort in Dallas, especially since majority owner Miriam Adelson bought the NBA’s Dallas Mavericks in 2023. Despite heavy spending, no casino bill has made it to a vote, and sports betting received no real traction in 2025.
Texas lawmakers only meet in odd-numbered years, and gaming changes require a voter referendum in even-numbered years. That means Texans would not be able to vote on casino or sports betting approval until November 2028 at the earliest.