Senator Sandra Hall gave an extended presentation alleging longstanding mismanagement and rule changes at the Texas Lottery Commission that she said enabled large‑scale wrongdoing by courier services and third parties.

Hall described a sequence of administrative rule changes dating from about 2014 through 2022 that, she said, opened avenues for electronic play slips, third‑party order entry and round‑the‑clock sales by courier services. Hall said those changes allowed courier operators to coordinate purchases covering nearly all number combinations in a lotto drawing and that the commission failed to investigate the scale of those operations. “This organized crime scandal that has been operating behind the shield of being a Texas state government agency is probably the most serious breach of trust we have seen since the Sharpstown Scandal in 1971 and 1972,” Hall said.

Hall recounted the June 2023 jackpot, when a storefront in Colleyville processed a ticket tied to a large claim and said the owner of that storefront had prior consulting ties to a U.K. lottery operator named Camelot. She said the commission shipped multiple lottery terminals to courier‑affiliated locations, did not ask about sources of large wire transfers, and later issued a press release acknowledging rule changes that arguably enabled courier activity. Hall said multiple criminal investigations are ongoing and listed a range of statutory penalties that could apply if the alleged activities were proven.

The committee called invited witnesses. Rob Kohler of the Christian Life Commission testified in favor of the bill and presented data on lottery sales by legislative district and the distributional effects of lottery revenue, arguing the lottery is regressive and relies heavily on scratch tickets. “This enterprise is about scratch tickets,” Kohler said, and he presented comparisons showing higher per‑capita lottery purchases in lower income districts.

Sergio Ray, the acting deputy executive director and former chief financial officer of the Texas Lottery Commission, appeared as a resource witness and said his role focused on financial integrity and auditing; he declined to characterize decisions by prior leadership, saying he could not speak to predecessors’ intent. Ray said the current staff is committed to following statute and auditing requirements.

John Wetzler of the Christian Life Commission testified in support of abolishing the commission, calling the lottery “the antithesis of Texas values” and urging lawmakers to act.

Committee members asked whether the commission had sought legislative authority for rule changes; Hall said she was not aware of requests and that, in meetings, commission representatives had denied authority to act. The committee opened and closed public testimony and left SB 1988 pending.

No committee vote was taken. Hall described the measure as a remedy up to and including abolition of the Texas Lottery Commission if its practices cannot be corrected.