Texas Lottery sends $1.85 billion to schools and veterans in its first year under the licensing agency

The Texas Lottery sent $1.85 billion to public schools and veterans' programs in the 2026 fiscal year, its first full year run by the Texas Department of Licensing and Regulation, the agency said in a year-end report released this week.

Of that, $1.82 billion went to the Foundation School Fund, which the Texas Education Agency uses for school district operating costs such as teacher pay, utilities, special education and career programs. The Fund for Veterans' Assistance received $31.7 million, which TDLR called a record. The agency said both amounts rose from the year before and that the total ranks fifth among the lottery's annual contributions.

Sales held steady after the rule changes

Lawmakers moved the lottery from the old Texas Lottery Commission to TDLR through Senate Bill 3070, effective Sept. 1, 2025. The law bars selling more than 100 tickets in one transaction, limits how many ticket-printing terminals a retailer may have, and ended the lottery app's electronic playslips.

A second law, Senate Bill 1346, aims to stop anyone from buying all or nearly all of the possible number combinations in a draw game. TDLR also cited the ban on online purchases and courier services.

Even so, sales totaled $7.865 billion, less than 1% below the prior year, the agency reported.

Scratch tickets brought in $6.242 billion, more than 79% of sales. The $2 scratch games dedicated to veterans sold a record $132.3 million.
Draw games rose 9.8% to $1.622 billion. Powerball sales jumped 56.1% to nearly $526 million, and Mega Millions totaled $319.4 million.
Players won $5.4 billion in prizes, 68.7% of sales, and 97 people claimed prizes of $1 million or more.
More than 19,000 retailers earned over $426.5 million in commissions and bonuses.
Administrative spending was $261.8 million through Aug. 31, or 3.32% of sales.

"These results show that strong contributions to Texas and strong safeguards can go hand in hand," TDLR Executive Director Courtney Arbour said in the release.

Rick Figueroa, who chairs the Texas Commission of Licensing and Regulation, said the agency was pleased with its first year running the games and would keep working to strengthen the program.

The report also notes that tickets are sold only to people 18 and older, and that lottery vending machines require a scan of a government-issued ID before a purchase can begin.

Sources

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