JD Key Consulting Logo
SB3070

Regular Session

Relating to the abolishment of the Texas Lottery Commission and the transfer of the administration of the state lottery and the licensing and regulation of charitable bingo to the Texas Commission of Licensing and Regulation; creating criminal offenses.

Critical
High Cost
Effective:2025-09-01
SB3070
Critical
Relating to the abolishment of the Texas Lottery Commission and the transfer of the administration of the state lottery and the licensing and regulati...
Critical Compliance Urgency
Requires immediate attention
Cost Impact
High
Effective
2025-09-01
Enforcing Agencies
State Auditor's OfficeSunset Advisory CommissionTCLRTDLR
Primary Author: Sen. Bob Hall
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025 (TLC abolished; criminal penalties active).
  • Compliance Deadline:
  • September 1, 2025: Retailers must enforce 100-ticket caps and cease courier/app transactions.
  • December 1, 2025: Bingo manufacturers must submit amended bonds naming TDLR as payee.
  • Agency Rulemaking: The Texas Commission of Licensing and Regulation (TCLR) is mandated to adopt rules "as soon as practicable" after September 1, 2025.
  • *Warning:* A "regulatory gray zone" exists between Sept 1 and final rule adoption regarding the specific "prescribed age verification process."

Immediate Action Plan

  • 1. Update POS Systems: Immediately program a hard-stop limit of 100 lottery tickets per single transaction to prevent criminal liability.
  • 2. Terminate Courier Contracts: Consult counsel to wind down all third-party app facilitation agreements before August 31, 2025.
  • 3. Amend Bingo Bonds: Contact surety brokers to change the obligee from TLC to TDLR before the December deadline.
  • 4. Audit Terminal Usage: If you operate locations with 6+ terminals, review sales data to justify the equipment count against general merchandise revenue.
  • 5. Monitor Texas Register: Watch specifically for the TCLR proposed rule defining the mandatory age verification technology.

Operational Changes Required

Contracts

  • Lottery Courier Agreements: Retailers with existing contracts to print tickets for courier services (e.g., Jackpocket, Lotto.com) must issue Notices of Termination for Cause effective no later than August 31, 2025. Performance under these contracts becomes a Class A Misdemeanor on September 1.
  • Surety Bonds (Bingo): Manufacturers must obtain a rider or new bond naming the Texas Department of Licensing and Regulation as the payee/obligee by December 1, 2025.

Hiring/Training

  • Criminal Liability Training: Front-line staff must be retrained immediately. Selling more than 100 tickets to a single individual in one transaction is now a Class B Misdemeanor for the clerk/agent.
  • Age Verification: Staff can no longer rely solely on visual assessment. They must use the specific verification method (likely ID scanning) prescribed by the Commission. Failure to do so is a criminal offense.

Reporting & Record-Keeping

  • Bingo Equipment Returns: A new statutory paper trail is required. Distributors must log receipt of returned items; Organizations must log the quantity and specific reason for return (defective, over-supply).
  • Email Retention: Align retention policies with TDLR standards (1 year minimum) to ensure audit correspondence matches agency records.

Fees & Costs

  • POS Reprogramming: Retailers must budget for immediate Point-of-Sale software updates to hard-code a stop at 100 tickets per transaction.
  • Revenue Impact: Retailers relying on high-volume sales from courier services will see this revenue stream eliminated entirely.

Strategic Ambiguities & Considerations

  • "Prescribed Age Verification Process": The statute requires agents to use a process "prescribed by commission rule." Until TCLR publishes this rule, retailers are at risk if they use a method (e.g., visual check vs. hardware scan) that is later deemed non-compliant.
  • "Disproportionate" Terminal Counts: The Commission will define when the number of lottery terminals is "disproportionate" to a retailer's non-lottery sales. High-volume lottery kiosks with low merchandise sales face a risk of license revocation under future rules.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Passed Senate
May 15, 2025
Passed House
May 26, 2025
Signed
Jun 20, 2025
TopicsAmusements, Games, SportsCrimesCrimes--miscellaneousState Agencies, Boards & CommissionsSunsetSunset--recommended ReviewsBingoGamblingLotteriesLicensing & Regulation, Texas Commission ofLicensing & Regulation, Texas Department ofLottery Commission, TexasPublic Safety, Department ofSunset Advisory CommissionComputers & SoftwareEmail & Electronic CommunicationsRecords ManagementAuditor, StateFinancial Crimes Intelligence CenterCourtsCourts--districtOpen Meetings
03

Senate Authors

Sen. Bob HallRepublican · Primary Author
Coauthors (10)

House Sponsors

Rep. Charlie GerenRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Sen. Bob Hall

View all bills by Sen. Bob Hall

Related by Topic

View more Amusements, Games, Sports legislation
Quick Reference

Frequently Asked Questions

Common questions about SB3070

Q

What does Texas SB3070 do?

SB3070 abolishes the Texas Lottery Commission, transferring all regulatory authority to the Texas Department of Licensing and Regulation (TDLR) effective September 1, 2025. Crucially, the legislation criminalizes the operation of third-party lottery courier apps and imposes strict Class B Misdemeanor liability on retailers for age verification failures and exceeding transaction limits. Implementation Timeline Effective Date: September 1, 2025 (TLC abolished; criminal penalties active).

Q

Who authored SB3070?

SB3070 was authored by Texas Senator Bob Hall during the Regular Session.

Q

When was SB3070 signed into law?

SB3070 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB3070?

SB3070 is enforced by State Auditor's Office (Annual Audits), Sunset Advisory Commission (Limited-scope review), Texas Commission of Licensing and Regulation (TCLR) and Texas Department of Licensing and Regulation (TDLR).

Q

How urgent is compliance with SB3070?

The compliance urgency for SB3070 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB3070?

The cost impact of SB3070 is estimated as "high". This may vary based on industry and implementation requirements.

Q

What topics does SB3070 address?

SB3070 addresses topics including amusements, games, sports, crimes, crimes--miscellaneous, state agencies, boards & commissions and sunset.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.