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Bill

SB 1990

Relating to the operation and administration of the state lottery and repeal of the prohibition on imposing taxes on lottery tickets or prizes.

89th Legislature (2025) Introduced by Bob Hall

SB 1990 would repeal Texas's constitutional ban on taxing lottery tickets and prizes, potentially creating new state revenue but increasing costs for lottery participants and players.

Referred to State Affairs
#amusements #games #sports(i0034) #lotteries(s0994) #lotterycommission #texas(v0454) #vendingmachines(s8792)
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WeVote Research Nonpartisan
Bill Summary · SB 1990

Legislative bill overview

SB 1990 would repeal the existing constitutional and statutory prohibition on taxing lottery tickets or prizes in Texas. This change would allow the state to impose taxes on lottery winnings and/or ticket sales, potentially creating a new revenue stream for state government.

Why is this important

Currently, Texas constitutional provisions explicitly forbid lottery taxes, making this one of the few areas of commerce explicitly protected from state taxation. Repealing this prohibition could generate significant state revenue but would directly increase costs for lottery participants, affecting both casual players and those who view lotteries as entertainment.

Potential points of contention

  • Revenue generation vs. regressive taxation: Lottery taxes would disproportionately impact lower-income individuals who spend a higher percentage of income on lottery tickets, making it a regressive tax structure
  • Constitutional amendment requirement: Repealing a constitutional prohibition likely requires voter approval through a constitutional amendment, not just legislative action, creating implementation uncertainty
  • Lottery participant impact: Winners and ticket buyers would face reduced returns or higher costs, potentially decreasing lottery participation and ultimately reducing projected tax revenue

Compiled from official sources — confirm details with the bill’s official record.

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