Texas Lottery Facing Cuts and Scrutiny for ‘Jerry Jones’ Connection

April 14, 2025 – Last week, the Texas House approved a $337 billion biennial budget that notably eliminates funding for the Texas Lottery Commission. This move, introduced by Representative Mary González, reallocates over $1 billion previously designated for the Lottery Commission and economic development initiatives.

A significant factor in this decision involves the Texas Lottery’s longstanding partnership with the Dallas Cowboys. Since 2009, the Lottery has collaborated with the Cowboys to offer branded scratch-off tickets featuring team-themed prizes, such as game tickets, merchandise, and exclusive experiences. Under the terms of this agreement, the state pays a 4% royalty on ticket sales (capped at $1.5 million annually) and a $700,000 annual licensing fee. Additionally, the Lottery allocates over $3 million for Cowboys-branded prizes and merchandise, all purchased upfront from the team. Notably, the Cowboys receive these payments regardless of whether the prizes are claimed by winners.

Critics argue that this arrangement results in the state pre-paying for promotional items, allowing the Cowboys to collect funds even if no one wins the prizes. This has raised concerns about the fairness and fiscal responsibility of such contracts, especially when the Lottery Commission’s primary mandate is to generate revenue for public education. While the Cowboys-themed games have contributed nearly $100 million to the Foundation School Fund, the structure of the partnership has come under scrutiny.

The House’s decision to defund the Lottery Commission reflects growing unease over these financial arrangements and a desire to reassess the state’s spending priorities. As budget negotiations continue, the future of the Texas Lottery and its promotional partnerships remains uncertain.