Texas Lottery Generates $1.85 Billion in Fiscal Year 2026
The state lottery contributed billions to public funds while reporting total sales of $7.865 billion for the 2026 fiscal year.
Updated on Oct. 26, 2026 in Gambling
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The Texas Lottery generated $1.85 billion for state programs in fiscal year 2026. This performance followed the transition of oversight to the Texas Department of Licensing and Regulation in September 2025.
Why it matters
These revenues provide essential funding for the Foundation School Fund and the Fund for Veterans' Assistance, supporting key public services across the state. The figures reflect the overall scale of lottery operations in Texas.
Scratch ticket sales surpassed $6 billion, while draw game sales reached $1.622 billion. Retailers earned more than $426.5 million in commissions and bonuses as administrative expenses totaled $261.8 million.
The players
Texas Department of Licensing and Regulation
This state agency assumed oversight responsibility for the Texas Lottery in September 2025.
The details
New regulations have restricted lottery ticket sales to a maximum of 100 per transaction and eliminated electronic playslip generation via the official app. These measures accompany a broader shift in oversight following the agency transition.
Timeline
September 2025: The Texas Department of Licensing and Regulation assumed oversight of the state lottery.
Fiscal year 2026: The Texas Lottery generated $1.85 billion for various state programs.
Culture Shift
The lottery operates within the regulatory framework of the Texas Lottery Act, which mandates the distribution of gaming revenue to public funds. This structure ensures that gaming proceeds are directly linked to state-supported educational and veterans initiatives.
Residents may notice changes to purchasing convenience, such as transaction limits on ticket quantities and the removal of app-based playslip generation. These operational shifts ensure compliance with current state lottery regulations.
The takeaway
The Texas Lottery remains a significant contributor to the Foundation School Fund and veterans programs through its large-scale retail network. Players should be aware of new transaction limits when purchasing tickets at local retailers.
Further reading
For additional context on the state gaming sector, see Texas Gambling.
Source note: This article includes information reported by KXAN.
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