Brightstar Secures Texas Lottery Deal Amid Evolving Digital Landscape

NEW YORK, NY – November 12, 2025

Stability in a Competitive Market

Brightstar Lottery PLC (NYSE: BRSL) has secured a two-year contract extension to continue providing technology and services to the Texas Lottery, effective immediately through August 31, 2028. While not a transformative announcement, the extension represents a significant win for Brightstar, demonstrating its sustained credibility with a major U.S. lottery and providing a predictable revenue stream in an increasingly competitive market. The deal comes at a pivotal time for the Texas Lottery, which is navigating new regulatory oversight and a shifting digital landscape.

Brightstar, which rebranded from International Game Technology (IGT) in July 2025 following the sale of its Gaming & Digital business, has doubled down on its core lottery operations. This extension signifies a validation of that strategic shift. “Maintaining strong relationships with key clients is paramount, especially during periods of market uncertainty,” commented one industry analyst. “Brightstar's ability to secure this extension speaks volumes about its reliability and the quality of its services.”

Brightstar’s financial performance reflects this focus. The company recently reported Q3 2025 revenue of $629 million, a 7% year-over-year increase, and reaffirmed its FY 2025 adjusted EBITDA target of $1.1 billion. While shares have decreased by almost 18% over the last year, the company is projecting revenues of approximately $2.75 billion and adjusted EBITDA of $1.3 billion by 2028, driven by organic growth and cost savings initiatives.

Navigating the Digital Lottery Debate

The Texas Lottery has recently been at the center of a debate surrounding the role of digital lottery play. In 2023, the launch of Jackpot.com, which allowed online lottery ticket purchases in Texas, raised regulatory concerns. This ultimately led to a tightening of regulations and a ban on private digital courier services. This ban significantly altered the digital landscape for the Texas Lottery, and impacts how Brightstar will support its operations.

Currently, the Texas Lottery app allows players to scan tickets, view winning numbers, and enter second-chance drawings, but the app recently removed a feature allowing players to create digital play slips for kiosk use, a change prompted by evolving Google Play Store policies. While the state’s approach to digital play is more restricted compared to some others, Brightstar’s technology underpins the existing digital infrastructure, including the app and the secure ticket validation systems.

“The situation in Texas highlights the broader tension between innovation and regulation in the lottery industry,” explained a source familiar with the state's regulatory changes. “Lottery operators are eager to embrace digital technologies to attract younger players and increase revenue, but regulators are concerned about issues like problem gambling and ensuring the integrity of the system.” Brightstar's ability to adapt to these evolving requirements will be critical.

Public Funds and Lottery Partnership

The Texas Lottery plays a crucial role in funding vital state programs, particularly education and veterans’ assistance. In FY 2022, the Lottery contributed a record $1.998 billion to these programs, with $1.972 billion allocated to the Foundation School Fund. This contribution represents a significant portion of the state’s education budget and underscores the importance of a reliable and efficient lottery system. Brightstar’s technology ensures smooth lottery operations, contributing to this consistent funding stream.

“The Lottery is a vital source of revenue for the state, and any disruption to its operations could have a significant impact on these programs,” noted a state finance expert. “Brightstar’s role in providing reliable technology is essential to ensuring the continued flow of funds.” The scale of the contribution, over $2 billion annually, makes it a cornerstone of the state budget. While instant tickets still make up the bulk of sales, with 75% of all games being instant tickets, Brightstar is also focused on developing innovative draw game solutions to boost revenue.

Brightstar's integration with the Texas Lottery ensures the security and transparency of ticket sales and prize payouts. The company is also investing in data analytics capabilities to help the Lottery optimize its marketing efforts and improve player engagement. This includes a focus on responsible gaming initiatives, ensuring that players have access to resources and support if needed. “The Lottery has a responsibility to protect its players and promote responsible gaming, and Brightstar is committed to helping it achieve that goal,” stated a company spokesperson.