Bill > HB839

This bill proposes to modify the Texas Government Code to limit the percentage of state lottery revenue that can be paid out as prizes to 40 percent of the gross revenue from ticket sales in each fiscal biennium. Currently, the law allows for prize payments without specifying a specific percentage cap. The bill would amend Section 466.355(b) to explicitly restrict prize payments while maintaining other existing provisions for lottery fund distribution, such as covering operational costs (currently limited to 12 percent of gross revenue), establishing various funds like a prize reserve fund, and transferring remaining balances to veterans' assistance and the foundation school fund. The changes would take effect for the state fiscal biennium beginning September 1, 2025, which means the new 40 percent prize payment limit would first apply during that two-year period. This limitation could potentially increase the amount of lottery revenue available for state programs by reducing the proportion allocated to prize winnings.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB839