Current Status of Sports Betting in the U.S.
As of now, 39 U.S. states have legalized some form of sports betting, with Missouri being the latest to join the ranks. Missouri’s legislation, passed narrowly by voters, allows both retail and online betting, although the rules will not take effect until September 30, 2025. This expansion means that approximately 68% of the U.S. population now lives in areas where sports betting is legal. However, major states like California and Texas remain on the sidelines, with ongoing debates and legislative hurdles.
Texas: A Major Player in Waiting
Texas is seen as a significant potential market for sports betting legalization. Despite its current illegal status, many Texans engage in sports betting through illegal means, such as neighborhood bookies or offshore websites. The Texas legislature, which meets every two years, has previously failed to pass sports betting bills in both 2021 and 2023. The next session begins on January 14, 2025, offering another opportunity for change. A University of Houston survey found that 73% of Texans support casino gambling, and 60% support online sports gambling, indicating strong public backing for legalization.
Challenges in Texas
One of the main obstacles to legalizing sports betting in Texas is Lt. Gov. Dan Patrick, who opposes gambling expansion. His stance has been a significant barrier to passing legislation. However, Governor Greg Abbott has expressed openness to legalized gambling, which could influence future efforts. The earliest possible vote on a bill legalizing sports gambling could occur in November 2025, with implementation potentially by late 2026 or as late as 2028 if delayed further.
Economic Potential of Legalization
Legalizing mobile sports wagering in Texas could generate substantial economic benefits. Eilers & Krejcik Gaming estimates that it could produce $32 billion in handle and $3.68 billion in gross gaming revenue. With a proposed tax rate of 15%, legalization could create approximately 8,000 jobs and result in about $360 million in direct tax revenue annually for the state once mature. However, banning college prop bets or bets on Texas college home teams could negatively impact potential handle and tax revenues.
Other States’ Efforts and Challenges
In Georgia, efforts to legalize sports betting have repeatedly failed, with the latest attempt in 2025 not receiving a floor vote. Similarly, Florida lawmakers have pre-filed bills to extend the state’s statutory prohibition against internet gambling. Meanwhile, Vermont and Mississippi have introduced bills to reverse legalized sports betting, highlighting the ongoing debates across the nation.
California’s Stalemate
California remains unlikely to see legalized mobile sports betting due to a lack of consensus among Native American tribes. This stalemate has persisted despite the state’s potential as a lucrative market. The situation in California mirrors challenges faced by other states, such as Minnesota, where legislators have struggled to reach a consensus among stakeholders like native tribes and charities running gaming entities.
Looking Ahead: The Future of Sports Betting
As more states consider sports betting legislation, the landscape continues to evolve. Economic impact studies and public support suggest significant tax revenue potential from legalized wagering. Public support exists according to polls conducted by universities like the University of Houston and University of Georgia. As states like Texas and California navigate their legislative challenges, the future of sports betting in the U.S. remains a dynamic and closely watched issue.