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The Texas Department of Licensing and Regulation reported that the Texas Lottery contributed $1.85 billion to public education and veterans’ services in fiscal year 2026, its first full fiscal year under the agency’s administration.
The contribution was the fifth-largest annual total in lottery history, according to the report published by The Gilmer Mirror. Lottery sales totaled $7.865 billion, less than 1% below fiscal year 2025.
School funding reached $1.82 billion
The Foundation School Fund received $1.82 billion, while the Fund for Veterans’ Assistance received a record $31.7 million.
Veterans-dedicated scratch ticket games generated a record $132.3 million in sales, more than 10% above the previous fiscal year. That sales figure is separate from the amount contributed to the veterans’ fund.
“These results show that strong contributions to Texas and strong safeguards can go hand in hand,” TDLR Executive Director Courtney Arbour said.
Texas laws restricted bulk ticket purchases
Senate Bill 3070 transferred Texas Lottery oversight and administration to TDLR effective Sept. 1, 2025.
The law also restricted sales of more than 100 lottery tickets in a single transaction, limited the number of ticket-printing terminals at licensed retailers and removed electronic playslip generation through the Texas Lottery app.
Senate Bill 1346 added safeguards to prevent attempts to purchase all or substantially all possible winning combinations in a draw game.
Those changes accompanied the first full fiscal year of lottery operations under TDLR. The reported financial results do not establish how individual safeguards affected sales or contributions.
Draw game sales rose as total sales edged lower
Scratch tickets accounted for more than 79% of overall sales, totaling $6.242 billion. Draw game sales increased 9.8% year over year to $1.622 billion.
Powerball and Mega Millions generated a combined $845.3 million, up more than $179 million from fiscal year 2025. Powerball sales rose 56.1% to nearly $526 million, while Mega Millions totaled $319.4 million. Texas-based draw games generated $777.2 million.
Players collected $5.4 billion in prizes, a record 68.7% of total sales. Ninety-seven players claimed prizes of $1 million or more during the fiscal year.
The lottery’s network of more than 19,000 retailers earned over $426.5 million in commissions and bonuses. Administrative expenditures totaled $261.8 million, or 3.32% of sales.
Since 1997, the Texas Lottery has contributed $37 billion to the Foundation School Fund. Contributions supporting Texas veterans have exceeded $311 million since the first veterans-themed scratch ticket game launched in 2009.
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Source: As reported by The Gilmer Mirror.
