Texas Lottery Transition Is Underway, Leadership Unchanged

With the Texas Lottery Commission (TLC) set to be officially dissolved on Sept. 1, work is underway to ensure a smooth transition of operations and personnel to the Texas Department of Licensing and Regulation (TDLR).

The shift stems from Senate Bill 3070, signed by Gov. Greg Abbott on June 20, which transfers oversight of the state’s lottery and charitable bingo functions to TDLR. The bill also introduces several changes, including a ban on lottery ticket courier services, a 100-ticket purchase cap for individuals and the requirement for TDLR to maintain a security office and undergo annual audits of lottery operations.

In a statement to Industry Insider — Texas, TDLR confirmed state officials are prioritizing continuity of service in preparation for the transition. Ensuring employees receive paychecks and that vendors and lottery winners are paid on time have been named as top objectives for the Sept. 1 milestone. Officials say both goals are on track.

Operationally, most TLC staff will continue in their roles within the new Lottery and Charitable Bingo division within TDLR. Integration into the broader TDLR organizational structure will occur where it aligns with agency needs and functions.

Sergio Rey will continue in his current capacity as interim deputy executive director, while Kelly Stuckey will serve as interim director of lottery operations and LaDonna Castañuela as director of Charitable Bingo operations.

While the initial structure is being solidified, TDLR has signaled that it will continue evaluating processes and may implement additional changes following the transition.

The Legislative Budget Board has projected that the abolition of the Lottery Commission could result in a negative fiscal impact of more than $126 million through the biennium. Even so, the transfer of oversight is moving forward, with the state aiming to centralize regulatory functions and address longstanding concerns raised in previous Sunset Advisory Commission reviews.

Among those recommendations were improvements to bingo oversight, modernizing outdated paper-based systems and strengthening fraud prevention mechanisms — all now under TDLR’s purview as it absorbs the lottery and bingo functions.

As the transition nears completion, the agency will continue to monitor the integration process and adjust as needed to maintain service continuity and compliance with the newly enacted law.