In March 1992, a contract to operate the Texas Lottery was awarded to GTECH to handle warehousing and distribution of tickets, retailer training and field support, telecommunications, and computer systems. The first Lottery game offered on 29 May 1992 was a scratch ticket – Lone Star Millions – that broke U.S. ticket sales records.
In 1997, passage of HB4 placed a limit on the prize payout for the state lottery and dedicated the unobligated lottery balance, which had previously been allocated to the general fund, to the Foundation School Fund. Average allocations from gross lottery proceeds are: prizes, 59%; administration, 7%; retailer commission, 5%; and the Foundation School Fund, 29%.
In June 1999, Gov. George W. Bush signed HB 844 into law, removing the cap on the prize payout percentage and restoring the discretion to establish the payout to the TLC.
In July 2000, the TLC increased the payout from 50% to 55% for the Lotto Texas game.
In December 2003, the Lottery had its first multi-state Mega Millions drawing and on 31 January 2010 offered Powerball tickets for sale.
In December 2010, GTECH Corporation was awarded a nine-year contract for lottery operations and services. The new agreement can potentially save the state $160 million over the life of the contract.
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