BILL ANALYSIS

S.B. 1346

By: Hughes

Licensing & Administrative Procedures

Committee Report (Unamended)

BACKGROUND AND PURPOSE

According to the Houston Chronicle, in April 2023, an international syndicate effectively purchased the historic Texas Lottery jackpot of $95 million, collecting a one-time payment of $57.8 million by acquiring virtually all of the 25.8 million possible number combinations. The operation was planned internationally in Malta, funded by a London betting company, and carried out by a few Texas retailers, all of which were connected to online sales companies called couriers. The bill sponsor has informed the committee that this type of organized activity undermines the integrity and fairness of the lottery. S.B. 1346 seeks to address this issue by prohibiting a sales agent from knowingly selling or allowing the sale of lottery tickets to one or more persons who are attempting to purchase all or substantially all possible winning tickets for the drawing, by requiring the Texas Lottery Commission to revoke a sales agent's license if they are found to be in violation, and by prohibiting a sales agent whose license has been revoked from applying for a new license until after the first anniversary of the license revocation date.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1346 amends the Government Code to prohibit a sales agent from knowingly selling or allowing the sale of tickets for a lottery game involving a drawing to one or more persons attempting to purchase all or substantially all possible winning tickets for the drawing. The bill requires the Texas Lottery Commission, after a hearing, to revoke a sales agent license issued to a sales agent who violates that prohibition for each of the sales agent's licensed locations. The bill prohibits a person whose license is revoked under the bill's provisions from applying for a sales agent license before the first anniversary of the license revocation date.

EFFECTIVE DATE

September 1, 2025.