Texas Lottery Contributes $1.85 Billion to Education and Veterans in 2026
The Texas Lottery generated $1.85 billion in funding for public education and veterans' services during fiscal year 2026, marking its fifth-largest contribution in history.
The total included $1.82 billion for the Foundation School Fund and a record-breaking $31.7 million for the Fund for Veterans' Assistance. Both amounts increased compared with fiscal year 2025.
Despite new regulations and tighter sales restrictions, the lottery maintained strong sales throughout the year.
Lottery Sales Reach Nearly $7.9 Billion
The Texas Lottery recorded approximately $7.865 billion in total sales during fiscal year 2026, finishing less than 1% below the previous year's figure.
Key financial highlights included:
- $7.865 billion in total ticket sales.
- $5.4 billion paid out in prizes, a new record.
- $1.82 billion contributed to public education.
- $31.7 million directed toward veterans' programs.
- More than $426.5 million earned by retailers through commissions and bonuses.
Scratch-off tickets generated more than $6 billion in sales, while draw game sales climbed 9.8% to $1.622 billion.
Powerball was a major driver of that growth. Sales jumped 56.1% year over year to nearly $526 million, helped by excitement surrounding a massive $1.8 billion jackpot won by a ticket sold in Fredericksburg in the September 6, 2025, drawing.
New Rules Bring Stricter Oversight
The Texas Lottery entered a new chapter on September 1, 2025, when oversight transferred to the Texas Department of Licensing and Regulation (TDLR).
The move followed Senate Bill 3070, passed by the 89th Texas Legislature, which introduced several changes designed to strengthen accountability and prevent abuse.
The new restrictions included:
- Limiting purchases to 100 tickets per transaction.
- Restricting the number of ticket-printing terminals at retailers.
- Prohibiting online ticket purchases and lottery courier services.
- Ending electronic playslip generation through the Texas Lottery app.
Senate Bill 1346 also introduced additional protections against attempts to buy every possible winning combination in draw games.
Officials Highlight Funding and Accountability
TDLR Executive Director Courtney Arbour said the results demonstrate that the lottery can continue supporting Texas communities while strengthening its safeguards.
She emphasized that the agency's first year overseeing the lottery focused on following legislative requirements, improving integrity, and maintaining funding for public education and veterans' services.
Billions Paid Out to Players and Retailers
Texas Lottery players received a record $5.4 billion in prizes, representing 68.7% of total sales.
Meanwhile, the lottery's network of more than 19,000 retailers earned over $426.5 million in commissions and bonuses.
Administrative expenses totaled $261.8 million, accounting for 3.32% of overall sales.
Overall, fiscal year 2026 delivered strong financial results for Texas, with billions of dollars returned to players and significant funding directed toward schools and veterans—even as the lottery operated under stricter regulations.
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