AUSTIN — The Texas Department of Licensing and Regulation (TDLR) marked its first full fiscal year administering the Texas Lottery with stronger oversight, new legislative safeguards, and increased funding for public education and veterans’ services.
The Texas Lottery contributed $1.85 billion to these beneficiaries in FY 2026, including $1.82 billion for the Foundation School Fund and a record $31.7 million for the Fund for Veterans’ Assistance. Both contributions increased over FY 2025, and the total was the fifth-largest annual contribution in Texas Lottery® history.
“These results show that strong contributions to Texas and strong safeguards can go hand in hand,” said Courtney Arbour, executive director of TDLR. “In our first year overseeing the Texas Lottery, we carried out the Legislature’s direction to strengthen integrity and accountability while increasing funding for public education and veterans’ services. That is what Texans should expect from their lottery: secure games, responsible management, and meaningful benefits for the state. I’m proud what we have accomplished in the first year and grateful to our retailers and players for their continued support.”
FY 2026 combined the implementation of legislative reforms to strengthen lottery oversight and integrity with strong financial performance. The Texas Lottery generated $7.865 billion in sales, less than 1% below FY 2025, while increasing its contributions to the state. Scratch ticket sales surpassed $6 billion and draw game sales reached $1.622 billion. These results reflect strong player participation through in-person purchases at licensed Texas Lottery retailers following the prohibition of online purchasing and lottery courier services.
Strengthening Lottery Oversight and Integrity
Legislative changes implemented in FY 2026 established a stronger framework for lottery oversight and accountability. Senate Bill 3070, passed by the 89th Texas Legislature, transferred oversight and administration of the Texas Lottery to TDLR effective Sept. 1, 2025, and established additional controls on lottery sales and operations. The law restricts sales of more than 100 lottery tickets in a single transaction and limits the number of lottery ticket-printing terminals at licensed retailers. Electronic playslip generation through the Texas Lottery® App was also removed. Senate Bill 1346 added safeguards to prevent attempts to purchase all or substantially all possible winning combinations in a draw game.
“Bringing the Texas Lottery into TDLR was a significant responsibility entrusted to us by the Legislature, and we are pleased with the progress made during the first year,” said Rick Figueroa, chairman of the Texas Commission of Licensing and Regulation. “This year’s performance reflects the work of our employees, retailers, and vendors along with the continued participation of players across Texas, all of whom help the Lottery program carry out its mission of generating revenue for Texas public education and veterans. We look forward to building on that foundation and continuing to strengthen the program for Texans.”
Responsible Play and Player Protection
Generating revenue for Texas carries a responsibility to protect players and retailers while continuing responsible gaming education, retailer training, and consumer protection efforts.
Throughout the year, the Texas Lottery maintained consistent responsible gaming (RG) messaging and training for players and retailers. Since its inception, the Texas Lottery has continuously emphasized that the sale and purchase of lottery tickets are strictly for adults 18 years or older. Age verification technology on all lottery vending machines (LVM) requires a government-issued ID to be scanned to initiate ticket purchase to prevent sales to minors.
During FY 2026, the Texas Lottery continued to prioritize RG through its comprehensive training, marketing, and seasonal campaigns. Annual training for retailers, vendor staff, and agency employees was paired with responsible gifting messaging during the December holidays and campaigns during Problem Gambling Awareness Month in March.
The Texas Lottery’s high standards continue to be recognized through certification from North American State and Provincial Lotteries (NASPL) and the National Council on Problem Gambling, along with continued Level 3 Responsible Gaming Framework certification from the World Lottery Association.
Responsible Management of Lottery Revenue
In FY 2026, as of Aug. 31, administrative expenditures totaled $261.8 million, equal to just 3.32% of sales, reflecting a focus on efficiency and fiscal responsibility. This rate remains among the lowest of any U.S. lottery, helping maximize funding for public education and veterans’ services.
Supporting Public Education and Texas Veterans
The Foundation School Fund, administered by the Texas Education Agency, funds the operational needs and special program services for Texas school districts, including teacher salaries, utilities, equipment, bilingual education, special education, gifted and talented education, and career and technical education.
The Texas Veterans Commission Fund for Veterans’ Assistance makes grants available to eligible charitable organizations, local government agencies, and Veterans Service Organizations that provide direct services to Texas veterans and their families. With 1.5 million veterans residing across the state, these programs provide financial assistance, transportation services, Post-Traumatic Stress Disorder counseling, and housing assistance.
Prizes Paid to Players
Texas Lottery players collected $5.4 billion in prizes in FY 2026, a record 68.7% of total sales. During the fiscal year, 97 players claimed prizes of $1 million or more, led by a share of the Sept. 6, 2025 Powerball jackpot, which was advertised at $1.8 billion at the time of the draw.
Retailers Share in FY 2026 Results
The Texas Lottery’s network of over 19,000 retailers across the state earned more than $426.5 million in commissions and bonuses. That total included a record $32.4 million in retailer incentives and rewards, including $1.420 million in bonuses paid for selling qualifying winning tickets through the expanded Retailer Bonus Program.
Scratch Ticket Sales
Scratch tickets sales totaled $6.242 billion in FY 2026, accounting for more than 79% of overall Texas Lottery sales. This year’s highlights are the popularity of extended play games and new game families that kept the portfolio fresh.
Sales for veterans-dedicated scratch ticket games set a new Texas Lottery record, generating $132.3 million in sales, an increase of more than 10% from FY 2025. The record sales for these $2 games helped support the record $31.7 million FY 2026 contribution to the Fund for Veterans’ Assistance.
Draw Games Sales
The Texas Lottery’s draw game sales increased 9.8% over the previous year, totaling $1.622 billion in FY 2026. Large multi-state jackpots helped drive the growth with six Powerball and Mega Millions jackpots reaching at least $500 million during the fiscal year. Texas-based draw games generated $777.2 million, representing nearly 48% of total draw game sales.
Powerball and Mega Millions combined for $845.3 million in FY 2026 sales, an increase of more than $179 million from FY 2025. Powerball led the growth with nearly $526 million in sales, up 56.1% year over year, while Mega Millions totaled $319.4 million. Texas had two Powerball jackpot wins during the fiscal year, matching the total number recorded in the state since Texas joined the game in 2010. The first was a Fredericksburg ticket that shared the advertised $1.8 billion jackpot for the Sept. 6, 2025 drawing, while a ticket sold in Leander later shared an advertised $20 million jackpot for the May 2 drawing.
The Texas Lottery’s four daily draw games (Pick 3™ plus FIREBALL, Daily 4™ plus FIREBALL, All or Nothing™ and Cash Five®) combined for $531.8 million, or nearly a third of the category. Texas’ in-state jackpot games (Lotto Texas® and Texas Two Step®) combined for $245.4 million in FY 2026 sales, making up 15% of total draw games sales. Lotto Texas with Extra!® totaled $179.9 million and produced one of the biggest jackpot runs in game history. Lotto Texas produced three jackpot wins during FY 2026, with additional jackpots of $41 million for the April 20 drawing and $26.75 million for the Aug. 10 drawing.
Texas Two Step, the game that produces the most jackpot winners in Texas each year, recorded 29 jackpot wins in FY 2026, resulting in 35 jackpot winners, while sales increased 9.1% from FY 2025 to more than $65.5 million.
