The Texas House has approved legislation to abolish the Texas Lottery Commission and reform lottery operations after multiple scandals have rocked the agency.

Authored by State Sen. Bob Hall (R-Edgewood), Senate Bill 3070 abolishes the commission that has overseen the lottery since shortly after its founding in 1991, moving operations to the Texas Department of Licensing and Regulation.

As originally written, the bill would also limit ticket sales per transaction, require age verification at the point of sale, push the agency into a two year probationary period and provide for greater oversight of the lottery—oversight that has been either intentionally or unintentionally lacking.

In January, Lt. Gov. Dan Patrick made an impromptu visit to a lottery ticket reseller responsible for selling millions of tickets online. During the course of his visit, he was denied access to the area where ticket printing was taking place.

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The bill, as originally written, would allow the lieutenant governor, Speaker of the House, attorney general, and governor the ability to act as inspectors of lottery operations.

At the eleventh hour, State Rep. Charlie Geren (R-Fort Worth) offered a 58-page amendment to the measure that removed this and other critical parts of the bill. It was this amended bill that was, according to Geren, drafted with the lottery vendors, colloquially called stakeholders, that ultimately passed the House.

Among other changes, the Geren amendment changed vendor and employee retention.

While it was argued that the current employees would provide for a smoother transition from the TLC to TDLR, this would include members of the staff who were complicit in the extra legislative expansion of gambling in the state of Texas, and covering for the lottery’s multiple sins.

The Geren amendment, passed under the watchful eye of IGT’s lobbyist and former chief of staff to Gov. Greg Abbott, Luis Sanez, also guarantees that the state lottery contract will remain with its current vendor, IGT. According to a lawsuit filed in Houston, the company played a critical role in an international gambling syndicate’s rigging of the April 2023 $95 million jackpot.

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According to testimony given to the Texas Senate State Affairs Committee, representatives from IGT were onsite for hours during the ticket printing at a location that conducted no retail business, which is against state rules. This is the same location where children were filmed printing tickets.

Geren, a longtime proponent of expanding gambling in Texas, failed to pass a bill last session that would have allowed casino gambling in the state. This session, the lottery, and its corrupt operation took all the oxygen out of the room.

State Rep. Brent Money (R-Greenville) offered an amendment to Geren’s amendment that would have abolished the lottery and not just the commission. Money’s amendment failed by a vote of 71-58.

Geren’s amendment was ultimately adopted in a vote of 91-44.

The legislation passed in a vote of 110-29.

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Now, the bill requires one more vote in the House before going back to the Senate for either approval or to be reconciled in a conference committee.

If the bill is not reconciled, the lottery may be abolished, or a special session could be forced to save the corruption-plagued institution.

Merkur Gaming US, a subsidiary of the German-based Merkur Group, has been granted a license to manufacture and distribute its gaming products in the state of Nevada – thereby gaining access to one of the leading casino markets in the US.

In addition, the Nevada Gaming Commission has approved Merkur’s acquisition of Gaming Arts LLC, a licensed Nevada-based gaming operator headquartered in Las Vegas and a trusted strategic partner of the German gaming specialist. It is anticipated that the transaction will close in early Q3 2025.

“This license represents a key strategic lever for expanding our international business and lay the foundation for a stable and successful long-term future for the entire Group,” said Lars Felderhoff, Chairman of the Management Board of the Merkur Group.

Michael Gauselmann, Chairman of the Supervisory Board of the Merkur Group, said: “With approval from Nevada, this moment serves to highlight and underscore the Merkur Group’s legally compliant and forward-looking approach in all areas without exception.”

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With the words “Welcome back to the industry,” the Nevada Gaming Commission sent off the Board of Management and the Supervisory Board – wishing them a successful future.

In addition to obtaining the license, the approval for the acquisition of Gaming Arts LLC represents another pivotal key element for the Merkur Group in officially re-entering the North American market as a certified manufacturer. The two companies have enjoyed a trusted strategic partnership that has already yielded mutually beneficial synergies. After thorough preparation, this collaboration will soon culminate in the acquisition by the Merkur Group.

“The close and constructive partnership with Gaming Arts LLC has significantly contributed over the past months to successfully establishing all necessary prerequisites for the licensing as well as the upcoming acquisition. We are deeply grateful for the excellent cooperation,” Felderhoff said.

Applying for the Nevada license was a logical step in the Merkur Group’s intensified international expansion strategy.

“Business conditions in our home market, Germany, have become increasingly challenging due to tightening regulatory frameworks. Nevertheless, together with the entire industry, we remain confident in the long-term prospects of the German gaming market,” Felderhoff said.

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“Our many years of experience and our sustained success provide a solid foundation for intensifying our focus on international gaming markets and establishing the Merkur brand abroad.

“Our re-entry into the North American casino market will significantly accelerate the international growth of the Merkur Group and place it on an even more solid footing,” Felderhoff concluded.

David Colvin, owner of Gaming Arts LLC, said: “We congratulate Merkur for achieving this outstanding milestone and we welcome them to the state of Nevada.”