Texas Lottery

What Texas Lottery does

Texas Lottery is a state government lottery entity headquartered in Austin, Texas, that operates draw games, instant-win scratch tickets, and multi-state lottery participation (Powerball, Mega Millions) to generate revenue for Texas public education and veterans' programs. Effective September 1, 2025, oversight of the Texas Lottery and Charitable Bingo transferred to the Texas Department of Licensing and Regulation (TDLR) under S.B. 3070, with the prior Texas Lottery Commission (TLC) now legally meaning TDLR.

The product portfolio comprises eight draw games (Powerball, Mega Millions, Lotto Texas, Texas Two Step, Pick 3, Daily 4, Cash Five, and All or Nothing) and scratch tickets priced at nine tiers from $1 to $100, including licensed-brand themed titles. Supporting consumer tools include a mobile application (iOS and Android), a "Check Your Numbers" web tool, live webcast drawing procedures, a digital Receipt Ticket system, retailer locator functionality, the Luck Zone second-chance promotion program, and the Lone Star Lineup multi-game add-on feature. Distribution is exclusively physical through thousands of licensed retail locations across Texas — convenience stores, grocery chains, and dedicated lottery retailers — supplemented by self-service vending machines for scratch tickets; no direct-to-consumer online sales channel exists. Marketing is conducted through a multi-channel footprint spanning the official website, Facebook, X (Twitter), YouTube, Instagram, RSS, email/text notifications, and earned media.

Revenue mechanics are transaction-based across per-unit scratch and draw game ticket sales, with multi-state participation pooling jackpots across consortium states. The agency operates a horizontal B2C segmentation model targeting Texas residents 18 and older, with no enterprise or B2B customer base. The regulatory and operating construct is that of a state monopoly with statutory exclusivity within Texas, mandatory responsible gambling standards, and proceeds earmarked for public education and veteran benefits.

Name

Texas Lottery

Legal name

Texas Department of Licensing and Regulation (Texas Lottery)

Website

https://texaslottery.com

Company type

Public

Founded year

1991

Operating status

Operating

Headcount range

251–500 employees

Short description

The Texas Lottery is a state government lottery entity headquartered in Austin that sells draw games, scratch tickets, and participates in Powerball and Mega Millions to generate revenue for Texas education and veterans, distributed exclusively through licensed retail locations statewide.

Ownership category

akta.pro rank

Product category

State Lottery Services

NAICS

Gambling Industries (7132)

SIC

Services-Amusement & Recreation Services (7900)

akta.pro primary industry

Lottery Operators (Government & Private Licensed) (MPAEAFAA)

akta.pro secondary industries

Lottery Ticket & Instant Games (Scratch-Off) Publishing/Printing (MPAEAFAC), Lottery Second-Chance, Loyalty & Rewards Platforms (MPAEAFAM), Bingo Charitable/Nonprofit Operations (MPAEAGAJ)

Keywords

• State lottery games
• Draw games
• Scratch tickets
• Instant win games
• Multi-state lotteries

Headquarters

HQ city

Austin

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure, Others

Revenue model

1. Draw Games Sales: Sales of draw game tickets including Powerball, Mega Millions, Lotto Texas, Texas Two Step, Pick 3, Daily 4, Cash Five, and All or Nothing. These are recurring ticket purchases with jackpots that grow based on sales.
2. Scratch Ticket Sales: Instant-win scratch ticket sales at various price points ranging from $1 to $100. Players purchase tickets for a chance to win instant prizes.
3. Multi-State Lottery Participation: Participation in multi-state lottery games (Powerball and Mega Millions) generates revenue from Texas players while contributing to shared jackpot pools.

Pricing tiers

Distribution channels2 records

Marketing channels9 records

Core offering

The Texas Lottery sells state-operated draw games (Powerball, Mega Millions, Lotto Texas, Texas Two Step, Pick 3, Daily 4, Cash Five, All or Nothing) and instant-win scratch tickets through a licensed retail network and self-service vending machines across Texas. It also regulates Charitable Bingo operations in the state, with all proceeds directed to Texas public education and veteran programs.

Product overview

The Texas Lottery operates a comprehensive lottery system offering both draw-based games and instant-win scratch tickets. The portfolio includes multi-state games (Powerball, Mega Millions) and Texas-specific draw games (Lotto Texas, Texas Two Step, Pick 3, Daily 4, Cash Five, All or Nothing). Scratch Tickets range from $1 to $100 price points with themed titles including licensed brands. Supporting tools include Check Your Numbers, Watch Drawings webcasts, a mobile app, Receipt Ticket system, and the Luck Zone second-chance promotion program. The Texas Lottery is administered by the Texas Department of Licensing and Regulation (TDLR) as of September 1, 2025.

Differentiator

Problem solved

Functional benefit

Brands

• Lone Star Lineup: Draw game product featuring multiple daily draws
• Luck Zone

Products and services

• Powerball

Named customers2 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered core and minor.

• PowerballcoreStrategic or Co-development PartnerTexas Lottery participates in the Powerball multi-state lottery game, sharing resources and prize pools with other state lotteries. This partnership allows Texas players to compete for national jackpots that can reach into the billions.
• Mega MillionscoreStrategic or Co-development PartnerTexas Lottery participates in the Mega Millions multi-state lottery game, pooling resources and prize structures with other participating state lotteries to offer some of the largest lottery jackpots in the world.
• Charitable Bingo OperatorsminorChannel Partner/ Reseller/ DistributorThe Texas Lottery also oversees and supports Charitable Bingo operations in Texas, providing regulatory oversight and linking to txbingo.org for Spanish-language bingo information.

Scale indicators3 records

Recent moves7 records

Expansion highlights4 records

Direct peers

• Michigan Lottery: State lottery with a leading iLottery platform and draw/scratch portfolio. Comparable to Texas Lottery on product breadth, with an additional digital sales channel that highlights Texas's gap.
• Pennsylvania Lottery: Operates a state-sanctioned lottery with draw games, scratch tickets, and a notably mature iLottery online platform. Comparable to Texas Lottery on product portfolio, with additional digital sales channel.
• Florida Lottery: State-operated lottery offering draw games, scratch tickets, and multi-state games, with proceeds supporting education. Compares to Texas Lottery on product depth, retail distribution, and beneficiary mission.
• New York Lottery: One of the largest state lotteries in the U.S., offering draw games, scratch-offs, and multi-state games including Powerball and Mega Millions. Closely comparable to Texas Lottery in scale and product offerings.
• Ohio Lottery: State-operated lottery with draw games, scratch tickets, and multi-state game participation. Directly comparable in scale, product mix, and beneficiary structure (education funding).
• California State Lottery: Operates draw games, scratchers, and multi-state jackpot participation in California under a similar state-licensed monopoly model. Directly comparable in product mix, scale, and regulatory framework.
• Georgia Lottery: State-run lottery focused on funding education through draw games, scratch tickets, and multi-state partnerships. Strongly comparable to Texas Lottery's mission and product structure.
• Illinois Lottery: Operates draw games, scratch-offs, and multi-state games under a state-managed monopoly. Comparable in product diversity and regulatory reliance on state oversight.

Others

• International Game Technology (IGT): Leading supplier of lottery technology, systems, and services to U.S. state lotteries. Adjacent ecosystem participant providing the operational infrastructure that Texas Lottery relies on for game management and retail systems.
• Multi-State Lottery Association (MUSL): Non-profit association that administers Powerball and shared multi-state lottery games among U.S. state lotteries. Texas Lottery is a member; MUSL is the operational backbone for the multi-state jackpots driving Texas Lottery's largest prize cycles.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/TexasLottery
• YouTubeyoutube.com/TheTexasLottery
• Facebookfacebook.com/TexasLottery
• LinkedInlinkedin.com/company/texaslottery
• Instagraminstagram.com/texaslottery

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Texas Lottery