Tennessee Lottery CEO Rebecca Paul Announces Retirement After 23 Years
Tennessee Education Lottery CEO Rebecca Paul will step down after 23 years, ending her tenure amid legislative scrutiny over her $650,000 salary.
NASHVILLE, TENNESSEE — Tennessee Education Lottery CEO Rebecca Paul announced her retirement from her position, effective at the end of 2026, concluding a nearly 23-year tenure that began before the state lottery’s launch in 2003.
Paul, who earned $650,000 annually as one of the state’s highest-paid employees, took the helm of Tennessee’s lottery program after serving in similar roles with the Georgia and Florida lottery systems. Her salary has drawn scrutiny from state lawmakers since her initial hiring.
Legislative Pressure and Recent Developments
The retirement announcement comes weeks after Tennessee lawmakers passed legislation targeting lottery board operations and salary information. House Speaker Cameron Sexton, a Crossville Republican, led renewed scrutiny of Paul’s compensation during budget hearings earlier this year.
The Tennessee Education Lottery was the state’s first legalized form of gambling, established through a constitutional amendment that designated all revenue from scratch-offs and lottery ticket sales to fund college scholarships.
Revenue Challenges Impact Scholarship Program
For most of its history, lottery revenue increased steadily, allowing higher education officials to expand scholarship programs. However, the financial situation changed significantly in 2019 when lawmakers legalized sports gambling.
Initially, sports gambling revenue flowed into the lottery education fund. But in 2025, legislators redirected that money toward K-12 schools as part of a deal to pass private school voucher legislation. Subsequently, traditional lottery revenue began declining.
During budget hearings this year, Don Bruce, a professor with the University of Tennessee’s Boyd Center for Business and Economic Research, told a state Senate finance committee that legalized sports betting was likely reducing lottery revenue.
Program’s Educational Impact
Since its 2003 launch, the Tennessee Education Lottery has provided funding for thousands of college scholarships through programs funded entirely by gaming revenue. The constitutional amendment creating the lottery specifically prohibited using general tax revenue for lottery operations.
Paul’s departure marks the end of an era for Tennessee’s lottery system, which she helped establish from inception. The lottery board will need to conduct a search for her replacement before her retirement takes effect at year’s end.
The timing of Paul’s retirement announcement, following legislative pressure over compensation and operational transparency, highlights ongoing tensions between lottery leadership and state lawmakers over program management and executive pay scales.
