Better than a private entity.
State lotteries pay out ~60% on average, compared to ~90%+ for casinos. Not apples to apples, but it seems like competition does shrink profit margins, for the benefit of the buyer. It's not clear to me which is better, but I'd be curious to read good analyses, if anyone has a pointer.
In this case, texas voters can demand the changes to prevent some company from buying all the numbers again. A private entity wouldn't be accountable to the public for anything. We have countless examples of private companies screwing over people both in secret or openly no matter how much the public wishes that they would stop.
My understanding is that the proliferation of casinos, state lotteries, etc. has been very bad for organized crime's traditional business model.