The impact of the Texas State Lottery on gambling patterns, expenditures on gambling, and the prevalence of problem gambling in Texas is assessed. Background and methodology is presented in Part 1. Data are compared with a survey run prior to the introduction of the first state lottery. Part 2, "Gambling among Texas Adults," includes data on prevalence, frequency, and patterns of gambling behaviors, reasons and preferences, age, illegal activities, new bettors, and expenditures on gambling. Chapters are devoted to "Problem and Pathological Gambling,""Substance Use and Gambling,""Gambling and Mental Health,""Multiple Problems," and "Treatment for Gambling Problems." Part 3 includes chapters on "Gambling by Texas Teens,""Teen Gambling on the Lottery,""Problem Gambling among Adolescents," and "Adolescent Substance Use and Gambling." Part 4 presents comparisons between adolescent and adult gambling. Tables of prevalence and recency of gambling activities for adults and teens, a map of the regions of Texas, analysis of lottery play, "Substance Problem Use Questions," and the South Oaks Gambling Screen instrument are included in six appendixes. The appended "Executive Summary" covers the background of the study, gambling among adults and adolescents, conclusions, and four statistical tables displaying data on the prevalence and recency of gambling activities by adults and teens. (EMK)