National Lottery Pushes for Ban on Betting to Protect Good Causes Revenue

Here in Austin, where the glow of the Texas State Capitol reflects off Lady Bird Lake and the hum of South by Southwest still lingers in the air each March, we take pride in our community’s vibrancy—from the youth soccer leagues in Mueller to the indie art collectives in East Austin. But what if I told you that a quiet financial drain, half a world away in Ireland, holds a mirror to a growing tension right here in our own backyard? A tension between the thrill of chance and the very fabric of what makes our city work.

The Irish National Lottery, a cornerstone of funding for everything from local sports clubs to arts programs, just dropped a bombshell report: in 2024 alone, an estimated €81 million ($87 million USD) that should have gone to “Good Causes”—their term for community funding—was siphoned off by bookmakers offering bets on lottery games. That’s not just a number on a spreadsheet. That’s 1,929 jobs lost in retail and community sectors, €125.7 million ($135 million USD) in economic output vanishing, and a direct hit of €12.7 million ($13.7 million USD) to the Irish Exchequer. And here’s the kicker: this isn’t some shadowy black market. It’s a legal, regulated practice in Ireland—and it’s happening in a strikingly similar way right here in the U.S., including Texas.

The Irish Lottery’s SOS: A Cautionary Tale for Austin

Premier Lotteries Ireland (PLI), the operator of the Irish National Lottery, isn’t mincing words. Their newly released Socio-Economic Impact Assessment Report, conducted by Indecon International Economic and Strategic Consultants, paints a stark picture. In 2024, €289 million ($312 million USD) in potential lottery sales were diverted to bookmakers and betting apps offering wagers on lottery outcomes. That’s not just lost revenue for the lottery—it’s lost funding for the very programs that keep communities like ours thriving.

Cian Murphy, CEO of the National Lottery, put it bluntly: “The National Lottery plays a vital role in funding Good Causes, supporting thousands of jobs, and driving economic activity across communities nationwide. Lottery betting in bookmakers is a very real risk to this ecosystem, reducing the funds available for local sports clubs, youth centres, arts programmes, and community services.”

Sound familiar? It should. In Texas, our state lottery contributes over $1.8 billion annually to public education, veterans’ programs, and other critical services. But just like in Ireland, a growing slice of that pie is being carved out by third-party betting platforms. These platforms let users bet on the outcomes of lottery draws—often with better odds, bigger payouts, and none of the regulatory guardrails that come with official lottery play. And unlike the state lottery, none of that money goes back to Texas schools, parks, or community programs.

The Texas Parallel: How Lottery Betting Hits Home

Let’s zoom in on Austin. The Texas Lottery, which has contributed over $35 billion to the state’s Foundation School Fund since 1992, is a lifeline for public education. But in recent years, the rise of online sportsbooks and betting apps has introduced a modern layer of competition. Even as Texas hasn’t yet legalized full-scale sports betting (unlike neighboring Louisiana or New Mexico), the gray market for lottery-style betting is already here—and it’s growing.

Here’s how it works: Instead of buying a Powerball ticket at your local H-E-B or 7-Eleven, you can place a bet on the Powerball outcome through an offshore betting site or a licensed sportsbook in another state. These platforms offer “lottery betting” or “draw betting,” where you wager on the numbers drawn in official lottery games. The catch? None of the proceeds from these bets move to Texas’s education fund or other state programs. Instead, they line the pockets of private operators, many of which are based overseas and operate in regulatory gray areas.

The numbers are staggering. In Ireland, the National Lottery estimates that 28% of its sales income goes to Good Causes. Apply that same percentage to the €289 million diverted to bookmakers in 2024, and you get the €81 million loss. Now, imagine if Texas saw a similar diversion. The Texas Lottery’s annual contributions to education hover around $1.8 billion. A 28% diversion of even a fraction of that would indicate hundreds of millions of dollars lost for Texas schools—money that funds teacher salaries, classroom supplies, and after-school programs in Austin ISD, and beyond.

The Retail Ripple Effect: Why Your Local Corner Store Should Matter to You

But the impact doesn’t stop at education funding. The Irish report highlights another critical casualty: small retailers. In 2024, lottery betting in Ireland led to a €238 million ($257 million USD) reduction in National Lottery retail sales. That’s not just lost revenue for the lottery—it’s lost foot traffic for the mom-and-pop shops, gas stations, and convenience stores that rely on lottery sales to keep their doors open.

In Austin, where local businesses are the backbone of neighborhoods like Hyde Park and the Domain, this hits close to home. Think about your go-to spot for coffee or a quick snack. Chances are, they sell lottery tickets. Those sales don’t just pad the store’s bottom line—they help pay rent, keep employees on the payroll, and fund community events. If lottery betting continues to grow unchecked, those stores could see a significant drop in foot traffic, just like their counterparts in Ireland. And in a city where small businesses are already struggling with rising rents and competition from corporate chains, that’s a threat we can’t ignore.

The Regulatory Wild West: Why Ireland’s Ban Could Be a Blueprint

Here’s where things get interesting. Ireland isn’t taking this lying down. The National Lottery is calling on the Department of Public Expenditure and Reform (DPER) to ban lottery betting outright. And they’re not alone—25 out of 27 EU states have already outlawed the practice. The argument? Lottery betting undermines the very purpose of state-run lotteries: to fund public goods while providing a safe, regulated environment for players.

In the U.S., the regulatory landscape is far more fragmented. While some states, like New York and Illinois, have taken steps to crack down on unauthorized lottery betting, Texas has yet to address the issue head-on. That leaves a gaping hole for offshore betting sites and gray-market operators to exploit. And with the Texas Legislature only meeting every two years, the window to act is narrow.

But there’s a silver lining. The Irish report offers a roadmap for how Texas could tackle this issue. By banning lottery betting outright, the state could protect its education funding, support local retailers, and ensure that lottery proceeds go where they’re supposed to: back into the community. It’s a move that would require political will—and a recognition that the lottery isn’t just a game, but a critical funding mechanism for public services.

The Human Cost: What €81 Million Could Buy in Austin

Let’s put the €81 million loss in Irish terms into Austin terms. That’s roughly $87 million USD. What could Austin do with an extra $87 million? Here are just a few possibilities:

• Affordable Housing: $87 million could fund the construction of over 500 affordable housing units in a city where the median home price has skyrocketed to $650,000. That’s enough to house every resident experiencing homelessness in Travis County for a year.
• Public Education: The Austin Independent School District (AISD) could hire over 1,000 new teachers, reducing class sizes and improving student outcomes in a district where over 50% of students are economically disadvantaged.
• Public Health: $87 million could fully fund Austin Public Health’s budget for two years, expanding access to mental health services, vaccinations, and maternal health programs in underserved communities.
• Arts and Culture: The entire annual budget for the City of Austin’s Cultural Arts Division is just $12 million. $87 million could fund it for seven years, supporting local artists, musicians, and performers who build Austin the “Live Music Capital of the World.”
• Infrastructure: $87 million could fund the entire cost of the proposed “Project Connect” light rail expansion, connecting East Austin to downtown and reducing traffic congestion on I-35.

These aren’t just hypotheticals. They’re the kinds of investments that shape the future of our city. And they’re exactly what’s at stake when lottery funds are diverted to private betting operators.

What This Means for Austinites: A Call to Action

So, what can we do about it? The first step is awareness. Most Austinites don’t realize that betting on lottery outcomes through third-party platforms doesn’t support Texas schools or community programs. Spreading the word—whether through social media, community meetings, or conversations with friends and family—can help shift the narrative.

Second, we necessitate to advocate for change. The Texas Legislature won’t act unless they hear from constituents. Reaching out to state representatives, attending town halls, and supporting organizations that advocate for responsible gambling policies can make a difference. Groups like the Texas Council on Problem and Compulsive Gambling are already working on these issues, and they need our support.

Finally, we need to support local retailers. Buying your lottery tickets at your neighborhood corner store or gas station isn’t just a convenience—it’s an investment in your community. Those sales help keep small businesses afloat, fund local jobs, and ensure that a portion of the proceeds goes back to Texas schools and veterans’ programs.

Given My Background in Community Economics, Here’s Who You Need in Austin

If this issue hits home for you—whether you’re a parent concerned about school funding, a small business owner worried about foot traffic, or just a resident who wants to see Austin thrive—here are the three types of local professionals you should know. These aren’t just generic categories; they’re the experts who can help you navigate the complexities of this issue and advocate for change in our city.

1. Policy and Advocacy Consultants (Specializing in State-Level Gambling Regulation)

What They Do: These professionals work with nonprofits, government agencies, and advocacy groups to shape gambling policies at the state level. They understand the legislative process, know how to build coalitions, and can help craft strategies to protect lottery funding and curb unauthorized betting.

What to Look For:

• Experience with Texas Legislature: Look for consultants who have worked on gambling-related bills in Texas or other states with similar regulatory landscapes (e.g., Louisiana, New Mexico). They should be familiar with the Texas House Committee on Licensing & Administrative Procedures, which oversees gambling issues.
• Nonprofit Partnerships: The best consultants have relationships with organizations like the Texas Council on Problem and Compulsive Gambling or the Texas Lottery Commission. These partnerships ensure their advocacy is grounded in real-world impact.
• Data-Driven Approach: They should be able to provide concrete data on how lottery betting affects Texas’s education funding and retail sector, similar to the Irish report. Ask for case studies or white papers they’ve authored on the topic.
• Local Roots: Austin-based consultants will have a better understanding of our city’s unique political and cultural landscape. They’ll know how to frame the issue in a way that resonates with Austinites—whether it’s tying it to school funding, small business survival, or community arts programs.

Where to Find Them: Start with firms that specialize in public policy or government relations in Texas. Many have offices in Austin or Dallas and list their gambling-related work on their websites. You can also check with local nonprofits like the Texas State Teachers Association or the Texas Retailers Association for recommendations.

2. Small Business Financial Advisors (With Expertise in Retail and Lottery Revenue)

What They Do: These advisors help small business owners—like the ones running your favorite convenience stores, gas stations, or newsstands—navigate financial challenges, including the impact of declining lottery sales. They can provide strategies to diversify revenue streams, optimize operations, and advocate for policies that protect small retailers.

What to Look For:

• Lottery Revenue Experience: Look for advisors who have worked with retailers that rely on lottery sales. They should understand the percentage of revenue that comes from lottery tickets and how to mitigate losses if those sales decline.
• Community Ties: The best advisors are embedded in Austin’s small business community. They might be members of the Austin Independent Business Alliance or have spoken at events hosted by the Austin Chamber of Commerce.
• Holistic Approach: They shouldn’t just focus on the numbers. The right advisor will help you understand how lottery sales tie into broader issues like foot traffic, customer loyalty, and community engagement. For example, they might suggest hosting local events or partnering with schools to drive traffic to your store.
• Advocacy Support: Some financial advisors go beyond crunching numbers—they help small businesses advocate for policies that protect their interests. Ask if they’ve worked with retailers to lobby for or against gambling-related legislation.

Where to Find Them: Start with local accounting firms or financial advisory practices that specialize in small business services. Many have experience working with retailers and can provide tailored advice. You can also check with the Austin Small Business Development Center for referrals.

3. Community Impact Analysts (Specializing in Socio-Economic Research)

What They Do: These professionals conduct research on how policies, economic trends, and social issues affect communities. They can help you understand the broader impact of lottery betting on Austin—from education funding to job losses in the retail sector—and provide data to support advocacy efforts.

What to Look For:

• Local Data Expertise: Look for analysts who have conducted research on Austin or Texas-specific issues. They should be familiar with datasets from the Texas Lottery Commission, the Texas Education Agency, and local economic development organizations.
• Policy-Relevant Research: The best analysts don’t just collect data—they translate it into actionable insights for policymakers and advocates. Ask for examples of reports they’ve written that have influenced policy decisions.
• Community Engagement: They should have experience working with local nonprofits, schools, or government agencies. This ensures their research is grounded in the needs and priorities of Austinites.
• Visualization Skills: Data is only as powerful as its presentation. Look for analysts who can create compelling charts, infographics, or interactive dashboards to help you communicate the impact of lottery betting to a broader audience.

Where to Find Them: Start with research firms or think tanks based in Austin or Texas, such as the Texas Public Policy Foundation or the LBJ School of Public Affairs at the University of Texas at Austin. Many analysts also work as independent consultants and can be found through professional networks like LinkedIn.

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