Texas State Lotteries Laws

The most common forms of gambling in the United States are: horse-racing, casino gambling, tribal gaming, charitable gambling, and the state lottery. Most states have lotteries, which are games of chance that award cash prizes. In general, the lottery is usually run by the state government, and the revenue it generates is put towards causes such as improving local communities and public education.

In Texas, the state lottery began in 1992 and is run by the Texas Lottery Commission.  The Texas lottery offers games such as: scratch-off tickets, Mega Millions, Powerball, Lotto Texas, Texas Two Step, Pick 3, and Daily 4. State lottery laws regulate issues such as how the revenue is to be distributed, whether lottery prizes may be garnished (delinquent taxes, child support payments, etc.), the time limits to claim prizes, as well as prohibited related activities.

The main provisions of Texas state lottery laws are listed in the table below.

Code Section

Govt §§466.001, et seq.

Distribution of Lottery Revenue

Payment of prizes, 62%; cost and expenses not to exceed 11%; to fund state education, 27%.

Additional Purpose of Lottery

-  

Lottery Prize Subject to Garnishment

Delinquent tax, child support payments, or default in student guaranteed loan shall be deducted

Time Limit to Claim Prize/Disposition

180 days/provides additional money to state lottery account; $20 million for TX Dept. of Health teaching hospital account, $5 million for Health and Human Services Commission for inpatient hospital services, rest to general fund

Prohibited Related Activities

Sales to minors; sales by phone; stolen, forged or altered tickets; sale at greater price; sale on credit; unauthorized sale; sale for food stamps or with AFDC check; influencing selection of winner; fraud

Note: State laws are constantly changing -- contact a Texas gaming attorney or conduct your own legal research to verify the state law(s) you are researching.

More Information

For additional information on this subject, you may can click on any of the links to additional resources listed below. You can also learn more about lotteries, in general, by checking out FindLaw’s Details on State Lottery Laws article. Finally, if you have more specific questions or need legal assistance, you may want to contact a Texas gaming attorney.

Research the Law

  • Texas Law
  • Official State Codes - Links to the official online statutes (laws) in all 50 states and DC.

Texas State Lotteries Laws: Related Resources