DALLAS, Texas–The newly appointed acting deputy executive director of the Texas Lottery Commission, Sergio Rey, came under scrutiny Tuesday during a Texas Senate Committee on State Affairs hearing on Senate Bill 1988—a proposal that could abolish the Texas Lottery by January 1, 2026.
The bill, filed by Senator Bob Hall (R-Rockwall), seeks to terminate lottery operations, redirect remaining funds to the Foundation School Program, and transfer bingo regulation responsibilities to the Texas Department of Licensing and Regulation.
During the hearing, Rey defended the agency’s operations against allegations of corruption and questions about its transparency and fairness.
Senator Hall challenged the effectiveness of the lottery, arguing that it contributes minimally to public education—funding only about three days of school operations annually. He also raised ethical concerns about the state’s reliance on lottery revenues.
The proposal, which calls for repealing the 1991 law that established the Texas Lottery, could result in a nearly $2 billion annual revenue loss, according to Hall.
Rey countered by warning of the potential financial impact on the state budget and stressed the need for careful consideration of alternative funding if the lottery is eliminated.
