Overview of Online Sports Betting Legalization in the United States
The landscape of online sports betting in the United States is changing rapidly as more states consider legalizing and regulating sportsbooks. Since the Supreme Court struck down the federal ban on sports betting in 2018, states have taken different approaches to legalization. Some states have moved quickly to allow both retail and online betting, while others have faced political and social hurdles. The push for legal online sports betting is driven by the promise of new tax revenue and the desire to keep gambling dollars within state borders. The growing popularity of mobile wagering is also a major factor. However, concerns about gambling addiction and the impact on local communities remain strong. These issues continue to shape the debate as lawmakers and voters weigh the pros and cons of legalization.
Texas Considers Sports Betting Legalization with HJR 134
In Texas, the debate over legal sports betting has reached a new stage. On February 12, 2025, State Representative Sam Harless filed House Joint Resolution 134 (HJR 134) in the Texas House. This bill could allow Texas voters to decide on legalizing sports betting later in 2025. The filing of HJR 134 has sparked strong reactions and renewed debate across the state. Supporters are hopeful that this bill will finally overcome the many obstacles that have blocked legalization in the past. Opponents, however, remain firm in their concerns about the risks of expanded gambling. The current version of HJR 134 focuses mainly on retail, or in-person, sports betting. Unlike earlier drafts, it does not include provisions for online sportsbooks. This omission has led to further discussion among stakeholders about the future of online betting in Texas. The bill also does not specify how tax revenue from sports betting would be allocated, which is a key issue for many lawmakers and voters. These missing details have left some uncertainty about how the law would work in practice.
Eligibility and Licensing in Texas
Under HJR 134, certain groups would be eligible for sports betting licenses. These include professional sports teams, PGA Tour events, and Class I racetracks. Texas is home to 13 pro teams, including seven major league teams, three MLS teams, the WNBA’s Dallas Wings, two women’s soccer franchises, four annual PGA Tour events, and four horse racing tracks. Only entities that existed before January 2025 would be eligible for licenses, and licensed operators could partner with management service providers. The bill does not specify how many licenses will be available or the exact process for awarding them, which has led to calls for more clarity. Once the licensing details are finalized and licenses take effect, the path to legal sports betting in Texas will become clearer. Supporters argue that legalizing sports betting would help keep millions of dollars in gambling revenue within the state, rather than losing it to neighboring states or offshore sites. Recent polls show that a majority of Texans support legalization, especially if tax revenues are used to fund public services. Governor Greg Abbott has shown openness to online sports betting, pointing to successful models in states like New York and Michigan.
Political and Economic Challenges in Texas
Despite growing support, significant political barriers remain in Texas. Lieutenant Governor Dan Patrick has said he will not advance HJR 134 without strong Republican backing. Even if voters approve the measure in November 2025, the state legislature only meets during odd-numbered years, so the earliest possible launch date for legal sports betting is likely 2027. The lack of clear tax allocation and licensing specifics also continues to be a concern for many stakeholders. As Texans prepare to vote on HJR 134, the outcome remains uncertain, but the momentum for legalization is stronger than ever. The debate in Texas highlights the balance between economic opportunity and social responsibility, as lawmakers try to address both the potential benefits and risks of legal sports betting.
Missouri Set to Launch Online and Retail Sports Betting
While Texas debates legalization, Missouri is moving forward with a clear plan. Missouri voters passed Amendment 2, which legalized sports betting in the state. Starting December 1, 2025, sportsbooks will be allowed to take wagers from residents aged 21 and older. The Missouri Gaming Commission is accepting applications for sportsbook licenses until September 12, 2025, for operators wishing to launch on the first day. Missouri’s licensing structure allows for up to 19 retail sportsbook licenses and up to 14 mobile sportsbook licenses. Each professional sports team in Missouri can offer both mobile and retail sports betting at their stadiums or nearby locations. There are also two “untethered” mobile licenses, which do not require a land-based partner. Major operators like FanDuel, DraftKings, Bet365, and PENN Entertainment’s ESPN BET have confirmed plans to enter the Missouri market. Caesars Sportsbook and BetMGM are also expected to participate, along with other potential entrants.
Taxation, Revenue, and Market Impact in Missouri
Sportsbooks in Missouri will be taxed at a rate of 10 percent. The first $5 million collected each year will go toward funding compulsive gambling prevention programs, with the remaining revenue supporting K–12 schools and higher education institutions. State estimates project annual tax revenue between zero and $28.9 million, but critics warn that promotional tax credit write-offs could reduce the actual amount available for education funding. Supporters argue that capping these deductions will prevent problems seen in other states. The ballot measure that legalized sports betting in Missouri passed by a narrow margin, with just under three thousand votes in favor. All six professional sports teams in the state supported the measure, and each team will have one platform for offering both retail and mobile betting. The new law also allows betting on college sports, which is expected to boost the market.
National Trends and Regional Pressure
The push for legal online sports betting in the United States is not limited to Texas and Missouri. Many states have already legalized some form of sports betting, and others are under pressure to follow suit as neighboring states move forward. In Missouri, the lack of regulated sports betting put pressure on lawmakers as states like Kansas, Illinois, Arkansas, Kentucky, Tennessee, Iowa, and Nebraska all legalized it. This regional competition has made it harder for states to ignore the potential benefits of legalization. The trend toward legalization is expected to continue as more states look for ways to increase revenue and respond to public demand.
Looking Ahead: The Future of Online Sports Betting in the USA
As more states consider legalizing online sports betting, the national landscape will continue to evolve. The experiences of Texas and Missouri highlight both the opportunities and challenges involved in passing new laws. While economic arguments and public support are strong, political and social concerns remain. The debate over how to regulate, tax, and manage online sports betting will likely continue for years to come. For now, the momentum is on the side of legalization, and more states are expected to join the growing list of those allowing legal online and retail sports betting. The future of online sports betting in the United States will depend on how lawmakers address the balance between economic growth and social responsibility, as well as how they respond to the needs and concerns of their citizens.