SB1346

Regular Session

Relating to prohibited sales to persons attempting to purchase all or substantially all possible winning tickets in a lottery drawing.

CriticalImmediate action required

High Cost

Effective:2025-09-01

Enforcing Agencies

Texas Lottery Commission

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: August 15, 2025 (Training and POS updates must be active prior to the effective date).
Agency Rulemaking: The TLC must define "substantially all" and "attempting" prior to enforcement. Expect proposed rules in Q2/Q3 2025. Until these terms are defined, the regulatory gray zone creates high liability risk.

Immediate Action Plan

1. Update POS Systems: Contact your lottery terminal vendor immediately to request hard-stop configurations for anomalous transaction volumes.
2. Revise HR Policies: Issue a memo to all staff stating that facilitating bulk buyouts is grounds for immediate termination.
3. Audit Courier Relationships: Identify any third-party buyers operating in your stores and demand written assurance of compliance with SB1346.
4. Establish "Circuit Breakers": Set internal alerts that notify corporate compliance if a single store's lottery sales spike by more than 200% in a 24-hour period.

Operational Changes Required

Contracts

Vendor/Courier Agreements: Review Master Services Agreements (MSAs) with third-party lottery couriers. Insert indemnification clauses holding them liable for lost revenue if their purchasing volume triggers a license revocation.
Employment Agreements: Update employee handbooks to define "facilitating bulk lottery purchases" as gross misconduct. This is essential for defending against unemployment claims and mitigating vicarious liability.

Hiring/Training

Staff Training: Front-line staff must be trained to identify "syndicate" buying patterns (e.g., coordinated groups buying sequential blocks).
Managerial Oversight: Shift authority for high-volume transactions to store managers. Clerks should not have the discretion to process transactions exceeding a specific dollar threshold without a manager's key/code.

Reporting & Record-Keeping

Refusal Logs: Implement a mandatory log for "Refused Bulk Sales." Documentation of refused sales is your primary affirmative defense against a claim that you "knowingly allowed" the practice.
Surveillance Retention: Align video retention policies with lottery draw cycles to ensure evidence exists to disprove collusion allegations.

Fees & Costs

Potential Revenue Loss: The penalty is license revocation, not a fine. The cost impact is the total forfeiture of lottery commissions for a minimum of one year.
Software Costs: Budget for Point of Sale (POS) software updates to implement "velocity limits" (hard stops on volume per terminal).

Strategic Ambiguities & Considerations

The statute uses the phrase "attempting to purchase all or substantially all possible winning tickets" but fails to define a percentage or monetary threshold.

The "Substantially All" Threshold: Is it 80% of combinations? 95%? Without a specific number, compliance is subjective.
The "Knowingly" Standard: It is unclear if liability attaches only when an owner has actual knowledge, or if knowledge is imputed because a manager "should have known" based on sales data.
Watch for Rulemaking: The Association will monitor TLC rulemaking for quantitative definitions of these terms.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsAmusements, Games, Sports Occupational Regulation Occupational Regulation--other Trades & Professions Lottery Commission, Texas Lotteries

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 1346
89R9028 BEE-D	By: Hughes
	State Affairs
	3/7/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 1346 would knowingly prohibit the sale of lottery tickets to one or more persons who are attempting to purchase all possible winning tickets for the drawing.

The Texas Lottery Commission will revoke the license of a sales agent found to be in violation. A sales agent whose license has been revoked cannot apply for a new one until after the first anniversary of the license revocation date.

The committee substitute to S.B. 1346 will change the standard from the person or persons attempting to buy "all" possible winning tickets to "substantially all."

As proposed, S.B. 1346 amends current law relating to prohibited sales to persons attempting to purchase all possible winning tickets in a lottery drawing.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter D, Chapter 466, Government Code, by adding Section 466.1555, as follows:

Sec. 466.1555. PROHIBITED SALES TO PERSONS ATTEMPTING TO PURCHASE ALL POSSIBLE WINNING LOTTERY TICKETS. (a) Prohibits a sales agent from knowingly selling or allowing the sale of tickets for a lottery game involving a drawing to one or more persons attempting to purchase all possible winning tickets for the drawing.

(b) Requires the Texas Lottery Commission, after a hearing, to revoke a license issued under Chapter 466 (State Lottery) to a sales agent who violates Subsection (a) for each of the sales agent's licensed locations.

(c) Prohibits a person whose license is revoked under Subsection (b) from applying for a sales agent license under this chapter before the first anniversary of the license revocation date.

SECTION 2. Effective date: September 1, 2025.

Senate Authors

Sen. Bryan HughesRepublican · Primary Author

Coauthors (1)

Paul Bettencourt (R)

House Sponsor

Rep. Jared PattersonRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 1346

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to prohibited sales to persons attempting to purchase all
	or substantially all possible winning tickets in a lottery drawing.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter D, Chapter 466, Government Code, is
	amended by adding Section 466.1555 to read as follows:
	Sec. 466.1555. PROHIBITED SALES TO PERSONS ATTEMPTING TO
	PURCHASE ALL OR SUBSTANTIALLY ALL POSSIBLE WINNING LOTTERY TICKETS.
	(a) A sales agent may not knowingly sell or allow the sale of
	tickets for a lottery game involving a drawing to one or more
	persons attempting to purchase all or substantially all possible
	winning tickets for the drawing.
	(b) After a hearing, the commission shall revoke a license
	issued under this chapter to a sales agent who violates Subsection
	(a) for each of the sales agent's licensed locations.
	(c) A person whose license is revoked under Subsection (b)
	may not apply for a sales agent license under this chapter before
	the first anniversary of the license revocation date.
	SECTION 2. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 9, 2025

TO:	Honorable Bryan Hughes, Chair, Senate Committee on State Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1346 by Hughes (Relating to prohibited sales to persons attempting to purchase all possible winning tickets in a lottery drawing.), As Introduced

The fiscal revenue implications of the bill cannot be determined due to unknown penalty amounts, the unknown number of potential violations, and the unknown timing of and number of re-applications of potential revoked licensees. The fiscal revenue implications of any associated fees cannot be determined.

The bill would amend the Government Code to prohibit the sale of lottery tickets to persons attempting to purchase all possible winning tickets. The bill would prohibit a sales agent from knowingly selling or allowing the sale of lottery tickets to one or more persons attempting to buy every possible winning ticket in a lottery drawing. The bill would direct the Texas Lottery Commission, after a hearing, to revoke the license issued of a sales agent who violates the bill's provisions at each of the agent's licensed locations and the sales agent would be prohibited to apply for a sales agent license for one year after the license revocation date.

Based on the analysis of the Comptroller of Public Accounts, the fiscal revenue implications of the bill cannot be determined due to unknown penalty amounts, the unknown number of potential violations, and the unknown timing of and number of re-applications of potential revoked licensees. The fiscal revenue implications of any associated fees also cannot be determined.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 362 Texas Lottery Commission

LBB Staff:

JMc, WP, GDZ, JBel, SD

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Frequently Asked Questions

Common questions about SB1346

What does Texas SB1346 do?

SB1346 introduces a mandatory "death penalty" for Lottery Sales Agents, requiring the Texas Lottery Commission (TLC) to revoke all licenses held by an operator if a single location knowingly facilitates a bulk purchasing scheme. This legislation creates enterprise-wide liability for multi-location retailers (convenience chains, grocery stores), where the actions of one clerk can trigger a total loss of lottery revenue across the entire company. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: August 15, 2025 (Training and POS updates must be active prior to the effective date).

Who authored SB1346?

SB1346 was authored by Texas Senator Bryan Hughes during the Regular Session.

When was SB1346 signed into law?

SB1346 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB1346?

SB1346 is enforced by Texas Lottery Commission.

How urgent is compliance with SB1346?

The compliance urgency for SB1346 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB1346?

The cost impact of SB1346 is estimated as "high". This may vary based on industry and implementation requirements.

What topics does SB1346 address?

SB1346 addresses topics including amusements, games, sports, occupational regulation, occupational regulation--other trades & professions, lottery commission, texas and lotteries.

Legislative data provided by LegiScanLast updated: November 25, 2025

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