If you would like to operate a state lottery in Texas, you must meet certain requirements. In addition to being a licensed business, you must have at least one location in Texas. You must apply for a license for each location. If you are interested in running a business in more than one location, you must apply for a separate license for each location. The lottery fees collected under this section must be deposited in the state treasury to the credit of the state lottery account.

Before the mid-1970s, state lotteries were little more than traditional raffles, where players would buy tickets for a future drawing. One of the first innovations of state lotteries was instant games, often in the form of scratch-off tickets, which featured low prize amounts but high odds of winning. State lottery revenues began to increase immediately after the introduction of these games. Many state lotteries now offer online ticket sales and enhanced promotions.

In 2009, $50.4 billion was spent on state lottery tickets and video kiosks. In 2010, the government pocketed $17.9 billion, or 30 percent of the proceeds. The rest went to prizes and commissions to the stores that sell tickets. In North Carolina, where the lottery first launched, education funding was cut by nearly twelve percent. The state lottery was so popular, many corner stores could not survive without it. These are just some of the problems facing the state lottery.