1. (a) A person commits an offense if, for financial gain, the person establishes or promotes a group purchase or pooling arrangement under which tickets are purchased on behalf of the group or pool and any prize is divided among the members of the group or pool, and the person intentionally or knowingly:

   1. (1) uses any part of the funds solicited or accepted for a purpose other than purchasing tickets on behalf of the group or pool; or
   2. (2) retains a share of any prize awarded as compensation for establishing or promoting the group purchase or pooling arrangement.
2. (b) An offense under this section is a felony of the third degree.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 6.38, eff. Sept. 1, 1995.