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Texas Lottery generates $1.85 billion for state programs in first fiscal year under TDLR

By
FOX Local
Texas
Published October 22, 2026 8:25 AM CDT
Published October 22, 2026 8:25 AM CDT
article

The Brief

    • The Texas Lottery contributed $1.82 billion to public education and a record $31.7 million to veterans' services in fiscal year 2026.
    • The strong funding totals came during the lottery's first year managed by TDLR following legislative reforms that introduced stricter sales limits.
    • Total sales reached $7.865 billion with players winning a record $5.4 billion in prizes, driven in part by major Powerball jackpots.

In its first full fiscal year under the administration of the Texas Department of Licensing and Regulation, the Texas Lottery contributed $1.85 billion to public education and veterans' services, officials announced.

$1.85 billion raised for Texas programs

The total contribution for fiscal year 2026 marked the fifth-largest in the lottery's history and included $1.82 billion for the Foundation School Fund and a record $31.7 million for the Fund for Veterans' Assistance. Both contributions increased compared to fiscal year 2025.

What they're saying:

"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."

The backstory:

Oversight of the Texas Lottery was transferred to TDLR on Sept. 1, 2025, under Senate Bill 3070 passed by the 89th Texas Legislature. The legislation established new controls, including restricting sales to no more than 100 tickets in a single transaction, limiting ticket-printing terminals at retailers, prohibiting online purchasing and courier services, and removing electronic playslip generation through the Texas Lottery App. Senate Bill 1346 also introduced safeguards against attempts to purchase all possible winning combinations in draw games.

Despite the regulatory changes, total sales reached $7.865 billion, staying less than 1% below fiscal year 2025. Scratch ticket sales exceeded $6 billion, while draw game sales grew 9.8% to $1.622 billion, driven heavily by large multi-state jackpots. Powerball sales surged 56.1% year-over-year to nearly $526 million, aided by a share of a $1.8 billion jackpot from the Sept. 6, 2025, drawing won by a ticket sold in Fredericksburg.

Players collected a record $5.4 billion in prizes, accounting for 68.7% of total sales. Meanwhile, the network of more than 19,000 retailers earned more than $426.5 million in commissions and bonuses. Administrative expenditures totaled $261.8 million, representing 3.32% of sales.

The Source: Information in this article is from the Texas Lottery and Texas Department of Licensing & Regulation.

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